Costco raises quarterly dividend to $1.30 per share

ISSAQUAH, Wash. - Costco Wholesale Corporation (NASDAQ:COST), the $428 billion retail giant with a "GREAT" financial health rating according to InvestingPro, announced today that its Board of Directors has approved an increase in the company’s quarterly cash dividend. The dividend on Costco’s common stock will rise from $1.16 to $1.30 per share, marking an annualized payout of $5.20. This dividend is scheduled to be paid on May 16, 2025, to shareholders who are on record as of the close of business on May 2, 2025. The company has maintained consistent dividend payments for 22 consecutive years.

The membership-based warehouse club operates a global network of 904 warehouses, with the majority situated in the United States and Puerto Rico. Costco also maintains a significant presence in Canada, Mexico, Japan, and several other countries, complemented by e-commerce platforms in various markets. The company’s extensive operations generated $264.1 billion in revenue over the last twelve months, with a solid 6.1% year-over-year growth rate.

Costco’s announcement also included a caution regarding forward-looking statements, which inherently involve risks and uncertainties that could cause actual results to differ materially. These statements are based on current expectations and assumptions about future events, such as economic conditions, market competition, consumer spending patterns, and regulatory changes.

The company highlighted several factors that could impact its business, including exchange rates, inflation or deflation, competition, regulation, financial market conditions, consumer and small business spending and debt levels, security breaches, real estate factors, labor costs, geopolitical conditions including tariffs, and public health issues.

Despite these risks, Costco continues to provide shareholder value through consistent dividend payments, reflecting confidence in its business model and financial stability. The increase in the dividend payout is a testament to the company’s performance and its commitment to returning capital to its shareholders. For deeper insights into Costco’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 13 additional ProTips and detailed financial metrics in the Pro Research Report.

The information in this article is based on a press release statement from Costco Wholesale Corporation.

In other recent news, Costco Wholesale Corporation reported a significant increase in sales for March, with net sales reaching $25.51 billion, an 8.6% rise from the previous year. The company’s adjusted comparable sales, which exclude the impacts of gasoline prices and foreign exchange rates, showed a robust 9.1% growth. Analysts from Telsey Advisory Group and DA Davidson have maintained their ratings on Costco, with Telsey keeping an Outperform rating and a price target of $1,100, while DA Davidson reiterated a Neutral rating with a $1,000 price target. The positive sales figures were partly attributed to an extra shopping day due to the Easter calendar shift, contributing approximately 1.5% to the growth. Costco’s e-commerce sales also saw impressive gains, with a 16.2% increase over the five weeks ending April 6, 2025. In the U.S., comparable sales were up 7.5%, while Canada and other international locations experienced growth as well. Additionally, recent analysis by Bernstein highlighted Costco as being relatively shielded from the impact of new U.S. tariffs, with about a third of its cost of goods sold being imported. Despite facing external economic pressures, Costco’s strong performance reflects its effective market execution and resilience in a challenging retail environment.

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