Costco Rises on Plans to Return $3.1 Billion to Shareholders
- Payment reflects the chain’s edge over much of retail industry
- Shares advance the most in almost three months in New York
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Costco Wholesale Corp., the warehouse-club chain that’s largely avoided the retail industry’s distress, rose the most in nearly three months after saying it would return $3.1 billion to shareholders through a special dividend.
The $7-a-share distribution will be funded primarily from additional borrowings, the company said on Tuesday. The special dividend will be paid on May 26 along with a raised quarterly dividend. The shares rose as much as 3.2 percent in New York, the biggest intraday gain since Feb. 2.