Should You Buy Costco Stock Before Oct. 30? Here's the Clear Answer.
Investors who plan to hold Costco shares for the long term can reap the benefits of its stock price appreciation, special dividends, and quarterly dividend payouts.
On November 13, Costco Wholesale (COST) will announce a dividend payout to shareholders with a record date of October 30. The dividend will be $1.47 per share, providing a yield of 0.6%. While this yield is modest compared to other consumer goods stocks, Costco's stock has a track record of outperforming the S&P 500. Currently, Costco offers three ways to reward shareholders: increased revenue through expansion, investor enthusiasm, and regular dividends.
The company has been expanding its warehouse network, with 914 warehouses as of fiscal 2025, 939 by fiscal 2026, and targeting 967 warehouses for fiscal 2027. Historically, Costco has beaten the S&P 500 by a significant margin over five years, with a 116% increase compared to the S&P 500's 73%. Additionally, Costco has a history of paying special dividends, most recently in 2024 at $15 per share.
While the current dividend yield may not be enticing, the potential for stock price appreciation, special dividends, and regular dividends could provide substantial total return potential for long-term shareholders. Therefore, it may be worth considering purchasing Costco stock before October 30 to take advantage of these potential benefits.
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