Why Costco Stock Crushed the Market Today

Core Viewpoint - Costco Wholesale announced a dividend increase, which positively impacted its stock price, rising nearly 3% compared to a minimal increase in the S&P 500 [1] Dividend Announcement - Costco declared a quarterly dividend of $1.30 per share, a 12$1.16, to be paid on May 16 to shareholders of record as of May 2 [2] - At the latest closing share price, this new dividend amount yields 0.5% [2] Comparison with S&P 500 - The new dividend yield is below the S&P 500 average of 1.4%, indicating that Costco is not primarily viewed as an income stock [3] Historical Dividend Growth - Costco has a history of consistent annual dividend increases for over 20 years, with the last increase being a 14% rise to $1.16 per share [4] Investor Sentiment - While the dividend is not the main driver of Costco's stock performance, it adds value for investors, and the company is expected to continue delivering double-digit dividend hikes in the future [5]