Summary
Costco Wholesale Corporation (COST) announced on April 26, 2011, a significant capital allocation decision through the approval of a new common stock repurchase program. This program authorizes the repurchase of up to $4 billion in common stock, set to expire in April 2015. This substantial buyback initiative signals management's confidence in the company's financial health and its commitment to returning value to shareholders. In addition to the share repurchase authorization, the Board of Directors also declared a quarterly cash dividend, increasing it by approximately 17% from $0.205 to $0.24 per share. This dividend increase, payable on May 27, 2011, to shareholders of record on May 1, 2011, reflects Costco's consistent ability to generate cash flow and its policy of rewarding its investors. The new buyback program replaces an existing one with approximately $800 million of unused authorization.
Key Highlights
- 1Costco approved a new common stock repurchase program of up to $4 billion.
- 2The new repurchase program has an expiration date of April 2015.
- 3The $4 billion buyback program replaces an existing program with approximately $800 million of unused authorization.
- 4The Board of Directors declared a quarterly cash dividend on common stock.
- 5The quarterly cash dividend was increased from $0.205 to $0.24 per share.
- 6The dividend is payable on May 27, 2011, to shareholders of record on May 1, 2011.