Costco to spend $2.2 bln to pay one-time dividend

Costco Wholesale Corp. said Friday that it will spend $2.2 billion to pay out a one-time dividend of $5 a share.

• A quarterly cash dividend on Costco common stock of 35.5 cents per share. The quarterly dividend is payable February 27, 2015, to shareholders of record at the close of business on February 13, 2015.

Costco said the special dividend, which is in addition to its quarterly dividend of 36 cents a share, will be funded through existing cash and additional borrowings.

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In 2012, Costco declared a special dividend of $7 a share, for a total value of $3 billion, as the retailer took advantage of easy lending terms to make the payout with borrowed funds.

The dividend comes as Costco, which sells groceries, fuel and other items in bulk, has bucked weak retail trends as it benefits from lower gasoline prices, strong store sales and membership fees.

Last month, Costco reported a 17% increase in profit on a 7% increase in same-store sales, excluding negative impacts from gasoline price deflation and foreign exchange.