Costco Increases Quarterly Dividend by 13.9%

April 13, 2022 5:08 PM EDT

Costco Wholesale Corporation (Nasdaq: COST) announced that its Board of Directors approved a raise in a quarterly dividend on the company’s common stock from $0.79 to $0.90 per share, or $3.60 on an annualized basis.

The dividend, which is payable on May 13 to shareholders of record at the close of business on April 29, represents a 13.9% increase, compared to a 12.9% increase in dividends last year (declared on April 14, 2021).

The yield on Costco's new dividend is 0.6%, based on the current price level, well below the average 1.87% dividend yield on the S&P 500.

The expected $3.60 per share annual dividend compares to 2022 expected earnings of $13.08, suggesting a payout ratio of 28%.

Shares of Costco are up 4% year-to-date.

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