Analysis – Costco Wholesale Corp. Increases Dividend by 13%

COST

Costco Wholesale Corporation announced a regular quarterly dividend of $0.45 per share, a 13 percent increase from the prior rate of $0.40 per share. The dividend will be paid at the new higher rate on May 13, 2016, to shareholders of record at close of business on April 29, 2016.

Date Quarterly Dividend
4/29/2016 0.45
2/10/2016 0.4
11/10/2015 0.4
8/12/2015 0.4
4/29/2015 0.4
2/11/2015 0.355
2/5/2015 5
11/12/2014 0.355
7/9/2014 0.355
5/14/2014 0.355
2/12/2014 0.31
11/13/2013 0.31
8/7/2013 0.31
5/15/2013 0.31
2/6/2013 0.275
12/6/2012 7
11/14/2012 0.275
8/8/2012 0.275
5/23/2012 0.275
2/8/2012 0.24
11/8/2011 0.24
8/3/2011 0.24
5/11/2011 0.24
2/9/2011 0.205
10/27/2010 0.205
8/4/2010 0.205
5/5/2010 0.205
2/10/2010 0.18

Analysis of Valuation of Costco Wholesale Corp. (Symbol COST).

Costco  is trading at the top of its price/sales (P/S) range. Costco is trading below its average dividend yield.

Price 4/14/16 % Yield 5 Year Div. Growth Rate SPS  2016 P/S  Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$151.40 1.06% 10.5% 284.50 0.49 0.23 0.49 1.40% 0.92%

Costco Wholesale Corp. Dividend Yield Chart (Click to enlarge)

COST3

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years. Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

One thought on “Analysis – Costco Wholesale Corp. Increases Dividend by 13%

  1. Costco is a fantastic company. I own a small amount of shares, 15 in total. It’s an expensive stock but one I would like to own 100 or more shares of in the future. Just waiting for it to dip. I wasn’t aware of the dividend increase. I’ll take it though 🙂

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