Costco (NASDAQ: COST) investors can look forward to a special treat this Christmas: a special dividend. While not yet announced, the trends suggest this company is on track to deliver another substantial payment to its shareholders. The company generates significant cash flow and free cash flow, has built a $14 billion cash pile, and has a history of special payments, with the last two made in December.
The critical takeaways are that, whether or not the special dividend is paid in December, a special dividend is on the way and will likely top $10 per share, potentially reaching $15, for a yield of roughly 1% to 1.5%.
