Maximizing Returns: Unveiling My Strategy for Costco's $15 Special Dividend

Costco Wholesale is issuing a special $15 dividend for shareholders, representing about a 2% dividend yield. Reinvesting the dividend into Costco stock has historically been a successful strategy, as previous special dividends have resulted in significant returns. The ex-dividend date for the special dividend is December 27, 2023. While Costco's revenue growth has been modest, its earnings per share (EPS) rose by 17%, making it an attractive investment. Although Costco's stock is currently expensive, an upcoming membership fee raise is expected to boost earnings. Overall, investors may consider establishing a position or reinvesting their dividends into Costco shares.