Costco shows resilience with $15 dividend, earnings beat

Costco Wholesale Corp. announced a special dividend of $15 a share as the warehouse club chain beat profit expectations for the fourth consecutive quarter.

It’s the company’s first special dividend since late 2020, when investors got $10 a share, according to data compiled by Bloomberg.

Costco has shown resilience as other big-box retailers voice caution on the consumer outlook.

Walmart Inc., which operates the competing Sam’s Club chain, struck a far more cautious tone when it reported earnings last month.

The stock has been trading near records, up 44% this year and outpacing the S&P 500 Index’s 23% gain.

Costco’s first-quarter earnings were $3.58 a share, outpacing the average estimate compiled by Bloomberg.

The closely watched measure of comparable-store sales rose 3.9% excluding gas prices and currency movements, which also topped expectations.

The company’s “strong value offering, high renewal rates, and club expansion plans make Costco well-positioned,” Jefferies analysts wrote in a note Friday.