COST Stock Rises Overnight: Costco’s $30 Special Dividend Has Retail Celebrating ‘Santa Coming Early’
-
Costco approved a $30-per-share special dividend, totaling approximately $13.3 billion.
-
The retailer also approved a new $4 billion share buyback program through November 2030.
-
On Stocktwits, retail sentiment toward Costco turned ‘bullish’.
Shares of Costco Wholesale Corp. (COST) gained overnight after the retailer announced a record $30-per-share special dividend, totaling about $13.3 billion. The announcement sparked bullish retail sentiment, with investors celebrating the massive payout and calling it an early Christmas gift for shareholders.
Costco Wholesale stock traded nearly 2% higher overnight Tuesday.
Costco’s Record-Breaking Shareholder Payout
On Tuesday, Costco’s board approved a one-time cash distribution of $30 for each outstanding common share. Investors holding the stock at the close of trading on Nov. 24, 2026, will qualify for the payment, which the company plans to distribute on Dec. 4, 2026.
The $13.3 billion payout represents a record special dividend for the membership-based retailer. As of Aug.30, 2026, Costco had $20.2 billion in cash and equivalents.
Along with the dividend announcement, Costco’s directors approved a fresh authorization allowing the company to repurchase as much as $4 billion worth of its common shares. The new arrangement will remain effective through November 2030.
Costco’s new buyback plan takes the place of its 2023 program, which was due to end in January 2027. The company has already used $3.1 billion of the earlier $4 billion budget to repurchase shares.
Jim Cramer Backs Costco Shares
Following the announcement, “Mad Money” host Jim Cramer expressed confidence in Costco, particularly among investors who had recently questioned its valuation.
“We just got a $30 special dividend in a stock we purchased. And those of us who, for momentary, thought that maybe it was it was overvalued, shame on us. Glad that my Charitable Trust stuck with it. It’s a buy.”
Last week, Costco reported October net sales of $24.50 billion, up 12.6% year-on-year. Total comparable sales rose 11.1% for the four-week period and excluding changes in gasoline prices and foreign exchange rates, comparable sales increased 7.3%. Digitally enabled sales also remained strong, climbing 22.5% in October. JPMorgan analyst Christopher Horvers had raised his price target on Costco to $1,150 from $1,015 while maintaining an ‘Overweight’ rating on the stock, implying an 8% upside potential from the stock’s last close.
