Costco Wholesale Declares $30 Special Dividend and $4 Billion Buyback

Costco Wholesale Corporation announced after the market closed on November 10 that it will issue a special cash dividend of $30 per share, amounting to roughly $13.3 billion. The distribution will be paid on December 4, 2026, to stockholders of record as of November 24, 2026. The disbursement doubles the warehouse retailer's earlier $15 per share special dividend paid in January 2024, which totaled roughly $6.7 billion.

Alongside the one-time payout, Costco's board reauthorized a common stock repurchase plan of up to $4 billion that expires in November 2030. The new authorization replaces a 2023 repurchase program that was scheduled to end in January 2027, under which the retailer bought back $3.1 billion of its common stock. Following the announcement, Costco shares gained 2% on Wednesday to trade at $1,087.61, after touching a high of $1,091.92.

The sizable capital return comes after an expansion in the company's liquidity. Costco concluded fiscal 2026 with $20,207 million in cash and cash equivalents, up from $14,161 million in fiscal 2025. Operating cash flow increased to $15,825 million compared to $13,335 million in the prior year. Additionally, the retailer's latest quarterly earnings beat expectations, posting $6.75 in earnings per share on $95.72 billion in revenue, reflecting an 11.1% year-over-year revenue climb.

Wall Street analysts maintain a consensus Moderate Buy rating on the retailer, according to MarketBeat, with an average price target of $1,092.23. On Wednesday, Sanford C. Bernstein lifted its price objective on the shares from $1,143.00 to $1,155.00 while reiterating an outperform rating. However, some market observers remain attentive to the company's valuation, noting that Freedom Broker downgraded the stock from Buy to Hold and Zacks reported a forward 12-month price-to-earnings ratio of 46.07.