Costco Approves Share Repurchase and Dividend Increase (COST)

Costco Wholesale Corporation COST announced Tuesday that it has authorized $4 billion in stock repurchases and will raise its quarterly dividend from $.205 to $.24 per share. The share repurchase program will expire in April, 2015 and replaces the existing program, which has unused authorization of approximately $800 million, which is due to expire in July, 2011. Costco now holds a dividend of $.96 per share on an annualized basis. The dividend is payable May 27, 2011, to shareholders of record at the close of business on May 13, 2011. Costco Wholesale Corporation operates membership warehouses that offer its members low prices on a limited selection of branded and selected private-label products in a range of merchandise categories. According to a Wall Street Journal report, "The popularity of dividends and buybacks has grown as companies seek ways to appeal to investors and tap cash piles they need not clutch as tightly in an improving economy." Shares of Costco are trading up $0.70, or nearly 0.90%, in after-hours trade, to $80.48. Costco currently operates 581 warehouses, including 425 in the United States and Puerto Rico, 80 in Canada, 22 in the United Kingdom, seven in Korea, six in Taiwan, eight in Japan, one in Australia and 32 in Mexico.