Costco Just Declared a $30 Special Dividend. Is It Reason Enough to Buy the Stock Before Nov. 24?
Costco announced a $30-per-share special dividend (its largest ever at $13.3 billion total) payable December 4 to shareholders of record by November 24. While the company's fundamentals are strong and it has a track record of special dividends, the stock trades at a premium 51.4 P/E ratio, making it expensive compared to peers. The author suggests investors should only buy if they believe in long-term ownership, not purely for the dividend.