Costco Wholesale Corp. (NASDAQ:COST) made its investors happy by giving out special dividends of 5 dollars to them. The dividends are one time but it certainly has made the investors happy and sent a ripple through the Wall Street market and left the investors out there buzzing. This step of Costco Wholesale Corp. (NASDAQ:COST) has made the company popular on the market and has attracted new investors towards the stock. 2.2 billion dollars have been dedicated to the special dividends. The warehouse retailer has been faring well ever since it started operating, even though retailers find it hard to get going amidst strong competition.
The company’s cash flow has been superb ever since the company started operating, and it has been giving out dividends. The wave of dividends has been turbulent, going up and down at times depending upon the financial shape of the company but CostcoWholesale Corp. (NASDAQ:COST) has never held out the dividends. That is why the company has been popular with the investors. Now, the company is making 20 percent from its e-commerce business which means that even warehouse retailers have realized that internet is the next big thing for shopping. Costco Wholesale Corp. (NASDAQ:COST) is setting a precedent for all the retailers out there that are just starting or are mellow because of the competition looming over them.
The company also made an impression on long term investors, promising them instant dividends and share buyback programs. Long term investors are extremely important for any company and it’s good to have many of them onboard because these are the investors that stick with you through thick and thin. Costco Wholesale Corp. (NASDAQ:COST) also provides lucrative prospects for short term investors who are looking for immediate return. Costco Wholesale Corp. (NASDAQ:COST) pays them off with healthy dividends and more often than not, small profits too.
The company has resolved to open 30-31 brick and mortar stores and will further expand with the passage of time. It now only has to keep the investors interested in the stock and not get detracted by expansions.Losing money at this stage can be crucial to the company, plus investors would like the company to get stable first rather than expand prematurely.
One thing Costco Wholesale Corp. (NASDAQ:COST)should make sure, that it doesn’t get too soft on investors. Spending too much money on dividends can be consequential. For now, it should just look to stabilize its finances and get investors onboard as many as it can.
Costco Wholesale Corp. (NASDAQ:COST)’s future is bright, albeit if it keeps finances intact and keep its investors happy. As for now, it should make sure that the stock doesn’t plunge and that investors remain onboard. If CostcoWholesale Corp. (NASDAQ:COST) can deal with that, there won’t much be hurdles for the company in the future. The management will rejoice at the future prospects of the company. Let’s see how things turn out eventually.
