Own Costco Stock by Oct. 30 to Qualify for Its Nov. 13 Dividend. Here's How Many Shares You'd Need for $1,000 in Yearly Dividends.
2026-10-27 01:30
•Jack Delaney •The Motley Fool
••• • Axe Cap view
Costco’s Dividend: Worth the Premium for Long-Term Growth?
Costco’s modest yield masks solid total returns from expansion and dividends.
Costco’s dividend of $1.47 per share payable November 13 requires an October 30 purchase date to qualify. At roughly 170 shares, you’d need about $173,000 invested for $1,000 annual dividend income—reflecting a low yield near 0.5%. But yield alone misses the point. Over five years, Costco’s stock price doubled, comfortably outpacing the S&P 500. Growth in store count and special dividends add further layers of return potential. For South African investors, direct exposure is tricky given the Rand’s volatility against the Dollar. Yet, USD/ZAR weakness could boost returns if you pay attention to the exchange rate. Still, buying Costco at these prices means paying for growth, not income. The strategy works best for patient investors who trust Costco’s model and can tolerate currency swings. If the US economic outlook turns sour or competition intensifies, that premium valuation may correct sharply. this is just our opinion and not financial advice
Avoid buying Costco purely for dividends; instead, consider it a selective buy for long-term growth if you’re comfortable with USD/ZAR exposure and high valuation. Watch for opportunities to trim on sharp rallies.
- COST
- USD/ZAR
- US economic slowdown hitting retail growth
- Rand depreciation eroding local returns
6/10
Costco will pay a dividend of $1.47 per share on Nov. 13 to shareholders of record as of Oct. 30. An investor would need approximately 170 shares (worth ~$173,000) to generate $1,000 in annual dividends. While Costco's dividend yield is modest at 0.5%, the stock offers multiple return drivers including stock price appreciation (up 108% over five years), special dividends, and quarterly dividends, making it a worthwhile long-term investment despite its high valuation.
Our take is based on reporting first published by The Motley Fool.