Will Costco Announce a Special Dividend on Dec. 11?

1 week ago 8

Rich Duprey

Mon, December 8, 2025 astatine 6:32 AM CST 5 min read

Costco (COST) shares are down implicit 2% this twelvemonth portion the S&P 500 gained 17%. This marks Costco’s worst comparative show successful implicit 2 decades.
Costco comparable-store income maturation slowed to 6.4% successful November. The slowdown suggests inflation-weary shoppers are delaying big-ticket purchases.
A peculiar dividend announcement connected Dec. 11 is improbable fixed existent underperformance. Costco typically issues peculiar dividends during periods of above-average institution performance.
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Costco Wholesale (NASDAQ:COST) has agelong been a terrific investment, delivering superior returns nary substance erstwhile you bought the stock. Whether you bought shares a twelvemonth ago, a decennary back, oregon adjacent astatine the crook of the millennium, the stock's accordant outperformance stems from its membership-driven exemplary that fosters loyalty and dependable revenue.

Beyond stock terms gains that often treble the broader market, Costco has rewarded investors done reliable dividends. For the past 21 years, it has raised its quarterly payout annually, gathering a way grounds of fiscal discipline. Even much enticing, the institution has periodically issued hefty peculiar dividends, turning a bully concern into an exceptional 1 by accelerating full returns.

On Thursday, Dec. 11, Costco volition study its fiscal archetypal 4th 2026 results. Can investors expect different peculiar dividend then?

Despite its phenomenal success, Costco's shares person faltered successful 2025, down much than 2% year-to-date portion the S&P 500 has surged 17%. This marks 1 of the stock's worst performances against the scale successful implicit 2 decades -- it hasn't performed truthful poorly since 2002. The divergence underscores a change: aft a blistering 39% summation successful 2024 (compared to a 25% summation by the benchmark index), Costco entered the twelvemonth with sky-high expectations, trading astatine a price-to-earnings ratio exceeding 50 -- good supra peers similar Walmart (NYSE:WMT) oregon Target (NYSE:TGT).

Several factors explicate the retailer's struggle. First, slowing comparable-store income maturation suggests a mild user spending pullback. Fiscal 2025's 4th fourth saw gross emergence 8%, but comp income maturation slowed to 5.8% from earlier highs, with November's figures dipping to 6.9% company-wide. Analysts constituent to inflation-weary consumers trading down oregon delaying big-ticket buys, contempt Costco's value-oriented focus.