Costco Wholesale, the warehouse merchant, announced Wednesday that it will pay a special $3 billion dividend before year's end, saving shareholders from a big bite should taxes rise due to the fiscal cliff.
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By John Spence
Retail exchange traded funds were in the red Wednesday along with Costco (NasdaqGS: COST) after the warehouse club operator reported quarterly net income that fell short of analyst estimates after a charge. Costco shares “have had a good run of late and are enjoying a healthy multiple, so we could see a modest pullback and we would be buyers,” Jefferies analysts said.
I’ve been trying to decide whether I should renew my membership to my local discount warehouse club. Now that I no longer have kids in diapers (hallelujah!) and don’t have any plans to buy a flat-screen TV this year, I had to figure out whether my annual membership fee pays for itself in savings or not.