Costco Hikes Its Dividend: What Income Investors Need To Know
Costco just made a shareholder-friendly move, increasing its dividend.


Costco Wholesale (COST) reported its monthly sales data earlier this week and surprised its shareholders with a massive dividend increase, adding to its long streak of annual dividend hikes.
On Wednesday, Costco released its March sales results, revealing a 9.4% increase from the prior year to $23.48 billion. Included in the report was news of a 13.7% increase to its quarterly dividend.
The warehouse giant will now pay a dividend of $1.16 per share each quarter, equating to an annualized dividend of $4.64 per share. This gives its stock a yield of about 0.6% based on today's share price. The next dividend is payable on May 10 to shareholders of record at the close of business on April 26.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Why should I invest in dividend stocks?
While Costco's yield does not turn heads, it has shown a strong dedication to growing its dividend, which is good news for income investors. The membership warehouse company has now raised its dividend every year since it initiated its payout in 2004, which means the increase it just announced marks the 20th consecutive year it has done so.
Costco is now just five years out from becoming a Dividend Aristocrat, a distinguished group of companies in the S&P 500 that have raised their payouts annually for at least 25 years in a row.
There are several reasons investors seek out these top dividend stocks. "Shares in companies that raise their payouts like clockwork decade after decade can produce superior total returns (price change plus dividends) over the long run, even if they sport apparently ho-hum yields to begin with," writes Dan Burrows, senior investing writer at Kiplinger, in his feature on Wall Street's best dividend stocks for dependable dividend growth.
Additionally, companies that raise their dividends year in and year out demonstrate both financial resilience and a commitment to returning cash to shareholders, Burrows adds.
What's more, once Costco becomes a Dividend Aristocrat, investors will see it added to some of the best dividend growth ETFs (exchange-traded funds), such as the ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which currently yields 2%.
Costco's expanding offerings
Costco is the world's third-largest retailer and currently operates 876 warehouses across the U.S., Puerto Rico, Canada, Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand and Sweden. It also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
You can get just about anything at Costco these days. Earlier this month, the warehouse giant announced that members in all 50 states can now get prescriptions for weight-loss drugs, including Ozempic and Wegovy, through its partnership with Sesame.
Costco has also been selling gold bars for nearly a year and recently added silver coins to its offerings – and it's been selling a lot. Wells Fargo estimates that Costco sells between $100 million and $200 million of gold every month, according to CNBC.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
46 Anti-Prime Day Tech Deals You Should Get from Best Buy's Black Friday in July Sale Instead
Apple, Blink, Garmin, Samsung and more leading tech brands are on sale at Best Buy's rival Prime Day sale this week.
-
Stock Market Today: Trump Reextends His Tariff Deadline
When it comes to this president, his trade war, the economy, financial markets and uncertainty, "known unknowns" are better than "unknown unknowns."
-
Stock Market Today: Trump Reextends His Tariff Deadline
When it comes to this president, his trade war, the economy, financial markets and uncertainty, "known unknowns" are better than "unknown unknowns."
-
Should You Start a 'Trump Account' for Your Child?
"Trump Accounts" for kids is part of the One Big, Beautiful Bill that was just signed. Look at if it's worth it for your children.
-
I'm a Financial Strategist: This Is the Investment Trap That Keeps Smart Investors on the Sidelines
Forget FOMO. FOGI — Fear of Getting In — is the feeling you need to learn how to manage so you don't miss out on future investment gains.
-
Can You Be a Good Parent to an Only Child When You're Also a Business Owner?
Author and social psychologist Susan Newman offers advice to business-owner parents on how to raise a well-adjusted single child by avoiding overcompensation and encouraging chores.
-
How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)
Financial advisers need to be strategic when they communicate with clients during market volatility. The goal is to not only reassure them but to also help them avoid rash decisions, deepen your relationship with them and build lasting trust.
-
Stock Market Today: President Trump Reboots the Tariff Trade
A broad consensus that markets hate uncertainty more than anything else is being tested on an almost daily basis in 2025.
-
The 60-40 Portfolio Rule of Investing: Not Dead Yet?
Adding alternative investments to a balanced portfolio can smooth out returns.
-
The Hidden Costs of Caregiving: Crisis Goes Well Beyond Financial Issues
Many caregivers are drained emotionally as well as financially, leading to depression, burnout and depleted retirement prospects. What's to be done?