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Costco Wholesale Corporation Dividends

COST Stock Analysis

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Section title

Dividend Yield
0.51%
Payout Ratio
115.13%
Dividend Amount Per Share
$4.22
Last Ex-Dividend Date
Jul 26, 2024

COST Dividend Safety

COST paid out 115.13% of its $6B earnings as dividends over the last 12 months.

Unsafe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

COST's Dividend Payout Ratio of 115.13% is considered high for the Consumer Defensive sector, potentially restricting the funds available for reinvestment and threatening future growth.

Interest Rate Coverage

COST's Interest Coverage Ratio of 501.333 indicates strong financial health with easy coverage of interest expenses.

Income Quality

COST shows excellent income quality with a ratio of 1.759. This indicates high-quality earnings and low risk of dividend cuts.

COST Dividend Growth

Costco Wholesale Corporation(COST) offers a dividend yield of 0.51% and pays $4.22 in dividends per share. Explore the historical dividend growth of COST.

Dividend Stability

COST has maintained stable dividend payments over the past 10 years with no cuts over 5%.

Dividend Growth

COST's dividend payments have increased by 12.282% annually over the last 5 years.

Earnings Growth

COST's earnings have grown by 11.451% annually over the last 5 years. This strong earnings growth suggests a stable and increasing income stream, supporting the sustainability and potential growth of dividend payouts.

COST Dividend Yield Attractiveness

Costco Wholesale Corporation(COST) provides a dividend yield of 0.51%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

COST

Peers

Industry

Sector

0.51%

2.26%

3.02%

4.16%

Dividend Yield

COST's dividend yield of 0.51% is considered good compared to the sector average of 4.163%, providing a strong safety margin for investors.

COST Cash Flow

Over the past 12 months, COST generated $254B in revenue, produced $7B in free cash flow, and distributed $9B in dividends.

100%75%50%25%0%

Free Cash Flow Growth

COST's free cash flow has grown by 14.969% annually over the last 5 years, indicating a strong ability to generate cash and support dividend payments.

COST Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by Costco Wholesale Corporation. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.