Why Costco Stock Crushed the Market Today

Although the dividend raise declared by Costco Wholesale (NASDAQ: COST) wasn't surprising, it did inject a fresh surge of bullishness into its stock. On Thursday, the big retailer's stock price rose nearly 3% on the back of the news, easily topping the 0.1% bump of the S&P 500 (SNPINDEX: ^GSPC) that trading session.Just after market close on Wednesday, Costco declared that its upcoming quarterly distribution would be $1.30 per share, which is a sturdy 12% higher than the $1.16 it paid out previously. This is to be dispensed on May 16 to investors of record as of May 2. At the most recent closing share price, the new amount would yield 0.5%. That's well under the current 1.4% average of S&P 500 index component stocks. Yet we can safely say that most investors don't consider Costco to be an income stock; rather, it's one of the rare retailers that habitually posts encouraging growth in key fundamentals, and is a unique and popular destination for millions of shoppers. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool