Mizuho says Costco should put special dividend money into the business
Mizuho analyst David Bellinger argues Costco could redirect an estimated $8-9 billion into e-commerce, delivery and gas stations instead of a special dividend.
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what happened
Analysts widely expect Costco to announce another special dividend, and some income-focused shareholders are looking for one in 2027. The retailer has paid such dividends since December 2012, starting with $7 per share and later paying $5, $7 and $10 per share. The largest payout so far was $6.7 billion in January 2024.
Mizuho analyst David Bellinger asks whether the roughly $8 billion to $9 billion could be deployed more strategically. He said management "could address certain weaknesses and decelerating membership growth" by putting that money back into the business. Mizuho views Costco as clearly behind rivals in e-commerce, rapid fulfillment and retail media.
The firm suggests investing in fast grocery delivery, building several hundred standalone gas stations and acquiring a high-margin advertising business, similar to Walmart's deals with VIZIO and Vibe.co. Costco currently operates one standalone gas station, in Mission Viejo, California, and plans another in Honolulu.
why it matters
For investors the question is how the company allocates its cash: a large special dividend or spending on growth. Mizuho's view signals that part of the market sees weaknesses in the retailer's development, which could weigh on how the company is valued.
market impact
Costco shares: the choice between special payouts and growth spending remains a valuation question
tags
instruments
sources
- Talking Costco: Why a special dividend might not be the right play — Seeking Alpha, 31 October 2026 at 11:00 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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