Costco to pay $7 special dividend on December 18
November 29, 2012 2:14 AM EST
Retailer Costco Wholesale Corp
The retailer also posted monthly same-store sales that beat analysts' expectations.
Shares of Costco, which charges a membership fee to let people shop at its stores for deals on everything from paper towels to diamond rings, rose 5.4 percent, or $5.10, to $101.68 in early trading.
Several companies have declared one-time cash dividends in recent days ahead of a likely increase in the dividend tax rate due to the so-called "fiscal cliff" - a combination of tax increases and spending cuts due to kick in at the beginning of next year if Congress and the White House cannot reach an agreement on a new deficit cutting plan.
Among those, spirits company Brown-Forman Corp
"We expect many cash-rich, stable operating companies to follow this trend, along with companies that have high insider ownership," Janney Capital Markets analyst David Strasser said.
Costco had cash and short-term investments of about $4.8 billion on September 2, and the access to credit markets to make such a large payout.
"Our strong balance sheet and favorable access to the credit markets allow us to provide shareholders with this dividend," Chief Financial Officer Richard Galanti said in a statement on Wednesday.
On November 19, Costco's bigger rival Wal-Mart Stores
Costco's special dividend will be paid on December 18, with the record date set at December 10.
November sales at Costco stores open at least a year rose 6 percent, helped by higher gasoline prices and dollar weakness, the company said. That compared with a forecast for 5.4 percent, according to Thomson Reuters data.
Excluding the effects of fuel and currency, Costco posted a November same-store sales increase of 5 percent. Net sales rose 9 percent to $8.15 billion in the four weeks to November 25.
(Reporting by Sakthi Prasad and Brad Dorfman; Editing by Dan Lalor and Maureen Bavdek)
Most Popular Slideshows
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- Chris Martin Dating Reports: Jennifer Lawrence Vs Gwyneth Paltrow [PHOTOS]
- 2014 MTV Video Music Awards: Everything To Know [PHOTOS]
- British Style Icon Kate Middleton Fashion Talk With Camilla Parker-Bowles Daughter-In-Law [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- 4.7-Inch, 5.5-Inch iPhone 6 Models Confirmed with Similar Build, Cam Features & 300+ Screen Pixels on Release Date
- Apple iPhone 6 Release Date, iPhone 6C or 6L Anticipation: Three Things Should Matter To New Phone Shoppers
- Xiaomi Mi4 vs iPhone 6: Why Forecasts Favor Mi4 as The Next Best Phone Against iPhone 6
- James Foley: More Chilling Information Revealed By Escaped Journalists
- James Foley Beheading Video Has Play-Acting Portions – Video Experts Say
- Samsung Galaxy Note 3 LTE Android 4.4.2, Android 4.4.4Guide: Installation and When to Hit Your Region
- Companies Push Back IPO Plans Due to Mega Alibaba Share Launch