Shares of Costco (NASDAQ:COST) are higher in early trading as investors jump on the company's new $7 per share special dividend and quarterly dividend boost.
The company is funding the special dividend payout primarily through new borrowings.
"Our strong balance sheet and favorable access to the credit markets allow us to provide shareholders with this dividend, while preserving financial and operational flexibility to continue to grow our business globally," noted CFO Richard Galant.
CNBC observes that the only other S&P 500 index company to pay out a special dividend this year is Ford.
COST +3.31% premarket to $178.40 vs. a 52-week range of $138.57 to $178.71.