Costco Has a Lot of Cash. Here’s How it May Spend It. (Special Dividend?)


Costco (COST) – Get Costco Wholesale Corporation Report always plans for a rainy day. While the warehouse club steadily expands and returns capital to shareholders via dividends (and occasional special dividends), it guards and uses its cash balance carefully.

Unlike Amazon (AMZN) – Get, Inc. Report and Walmart (WMT) – Get Walmart Inc. Report, Costco has not built out a massive two-day, next-day, and same-day delivery infrastructure. Instead, it has focused on partnerships — like its deal with Instacart — focused delivery options, and a targeted digital approach.

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