Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Supermarket chain Costco declares special dividend of $10 per share

Published 11/16/2020, 05:25 PM
Updated 11/16/2020, 05:30 PM
© Reuters. Photo of the rear of a Costco membership card /American Express credit card

(Reuters) - Membership-only supermarket chain Costco Wholesale Corp (O:COST) on Monday declared a special dividend of $10 per share as it benefits from consumers stocking up essentials due to the COVID-19 pandemic, sending its shares up about 2% after the bell.

The dividend totaling $4.4 billion would be funded through existing cash. It will be paid on Dec. 11 and is the company's fourth such payout in eight years.

Higher demand for fresh produce, appliances and gardening and sporting goods has helped the warehouse chain record growing sales and traffic at its stores, where customers typically buy items in bulk at lower prices.

Separately, Warren Buffett's Berkshire Hathaway Inc (N:BRKa) said it has dissolved its stake in Costco and started new investments in drugmakers including Pfizer (N:PFE) and Merck (N:MRK).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.