Key takeaways
- On November 10, 2026, after the U.S. market close, Costco announced a special cash dividend of $30 per share, payable December 4, 2026, to shareholders of record as of the close of business on November 24, 2026.
- This is a special dividend, separate from Costco's regular quarterly dividend, which the November 10 release did not change.
- Four dates shape who receives a dividend: declaration, ex-dividend, record, and payable. Costco stated three of them and did not list an ex-dividend date.
- "Special" is the company's description of the payment, not an IRS tax category. Whether a dividend is qualified or ordinary depends on IRS rules and is reported on Form 1099-DIV.
- A special dividend can create a large cash payment and a same-year tax bill. Reinvesting it through a DRIP buys more shares and can increase concentration, including for people who hold shares from equity compensation.
After the U.S. stock market closed on November 10, 2026, Costco Wholesale Corporation (Nasdaq: COST) announced that its Board of Directors had declared a special cash dividend of $30 per share. If you own the stock in a brokerage account or through equity compensation, the practical questions are who receives the payment, when, how it may be taxed, and what to consider before the cash arrives.
This material is for informational purposes only and is not a recommendation to buy or sell any security. Dividends are not guaranteed and may be changed or eliminated.
What Costco Announced
According to Costco’s November 10, 2026 press release, the Board declared a special cash dividend of $30 per share on Costco common stock, payable December 4, 2026, to shareholders of record as of the close of business on November 24, 2026. Costco estimated the total payment at approximately $13.3 billion.
The same release said the Board also reauthorized a common-stock repurchase program of up to $4 billion, expiring in November 2030. It replaces the current $4 billion program adopted in 2023, which was scheduled to expire in January 2027 and under which $3.1 billion had been purchased. Buyback authorizations do not require any specific amount of repurchases, and buybacks are not guaranteed.
This is a special dividend, separate from Costco’s regular quarterly dividend, which the November 10 release did not change. Costco has declared special cash dividends before. Its most recent one prior to this announcement was $15 per share, announced in December 2023. The press release did not list an ex-dividend date.
The Four Dates That Determine Who Receives a Dividend
- Declaration date. The day the board announces the dividend and, typically, the record and payable dates. Here, that date is November 10, 2026.
- Ex-dividend date, or ex-date. The first date on which a buyer of the stock is generally not entitled to the upcoming dividend. Costco did not state an ex-date. The SEC’s Investor.gov explains that the ex-date is set by stock-exchange rules once the record date is set. For stocks, it is usually the record date itself, or one business day before if the record date is not a business day. Different timing can apply if a dividend is 25% or more of the stock’s value. Confirm the official ex-date with your broker or the exchange.
- Record date. The date used to determine who is on the company’s books as a shareholder entitled to the dividend. Costco set this as the close of business on November 24, 2026.
- Payable date. The day the company pays the dividend. Costco set this as December 4, 2026. For most individual shareholders using the cash method, a cash dividend received in a taxable account is generally included in income for the year it is received, which would be 2026.
On the ex-dividend date, a stock’s price may decline by approximately the amount of the dividend, all else equal. Investor.gov notes that this can happen with a significant dividend. It is a mechanical adjustment, not a signal to buy or sell.
How Dividends Are Taxed: Qualified vs. Ordinary
“Special” is how Costco described this payment. It is not a separate IRS category.
IRS Topic No. 404 and Publication 550 explain that dividends are distributions of earnings and profits paid to stockholders. A distribution not paid from earnings and profits may be treated as a return of capital, which generally reduces your cost basis rather than being taxed as a dividend. After basis is reduced to zero, further nondividend distributions are generally treated as capital gain.
If the payment is a dividend, it is an ordinary dividend. Some ordinary dividends are also qualified dividends, taxed at the same maximum rates that apply to long-term capital gains. Publication 550 says those rates apply only if the dividends were paid by a U.S. corporation or a qualified foreign corporation, they are not of a type listed as not qualified, and you meet the holding-period test: for common stock, more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. Count the day you sold, but not the day you bought. The payer identifies qualified dividends on Form 1099-DIV.
Dividends reinvested through a DRIP in a taxable account are generally still taxable in the year they are paid. Topic No. 404 notes that significant dividends may also be subject to the net investment income tax and estimated tax rules. A December payable date means any tax that applies would generally come due for 2026. Dividends inside an IRA or 401(k) follow that account’s rules. LPL Financial does not provide tax or legal advice.
Planning Considerations for Shareholders
You generally must be a shareholder of record on the record date, which in practice means you owned the shares before the ex-dividend date. Shares in a brokerage account, IRA, or workplace retirement plan can all participate, though the tax results differ.
If you hold shares from equity compensation, vested shares you own on the record date generally receive the dividend. Unvested RSUs are typically a future right to shares, so dividend equivalents depend on your plan documents. Trading windows can also limit when employees may buy or sell.
A special dividend converts part of a stock position into cash, after any taxes. Keeping the same share count means you still have that exposure, plus the cash. A DRIP may buy more shares and increase concentration. Confirm whether your DRIP applies to special dividends, especially if your career and investments already depend on the same employer.
Some households set aside part of a large dividend for taxes; others use it for goals or keep it invested. There is no single right answer, and this article is not a recommendation to spend, reinvest in the same stock, or diversify.
If you would like to talk through how a dividend like this fits your goals, concentration, and tax picture, you are welcome to request a complimentary wealth review. It is a no-obligation conversation about your Goals, Values, and Aspirations™.
Sources
- Costco Wholesale Corporation, press release dated November 10, 2026: Declares $30 Special Cash Dividend and Reauthorizes Stock Repurchase Program
- Costco Wholesale Corporation, Form 8-K filed November 10, 2026 (Item 8.01)
- Costco Wholesale Corporation, Form 8-K Exhibit 99.1, press release dated November 10, 2026
- Costco Wholesale Corporation, press release dated December 14, 2023: Announces a Special Cash Dividend of $15 Per Share
- IRS Topic No. 404, Dividends and other corporate distributions
- IRS Publication 550, Investment Income and Expenses
- U.S. Securities and Exchange Commission, Investor.gov: Ex-Dividend Dates
- Featured image photograph: Ambrosia LaFluer, Costco Exterior (originally on Flickr), licensed under CC BY 2.0. Cropped and used as part of a branded graphic.
Frequently asked questions
What did Costco announce on November 10, 2026?
Costco's Board of Directors declared a special cash dividend of $30 per share, payable December 4, 2026, to shareholders of record as of the close of business on November 24, 2026. The company estimated the total payment at approximately $13.3 billion. The same release also announced a reauthorized common-stock repurchase program of up to $4 billion.
What is the ex-dividend date?
Costco's announcement did not list an ex-dividend date. According to the SEC's Investor.gov, the ex-dividend date for stocks is usually set as the record date, or one business day before if the record date is not a business day. Different timing can apply if a dividend is 25% or more of the stock's value. Confirm the date with your broker or the exchange.
Will this special dividend be taxed as a qualified dividend?
Not automatically. "Special" is how the company described the payment, not how the IRS classifies it. If the distribution is paid from earnings and profits, it is generally a dividend, and it may be qualified if you meet the holding-period and other IRS tests in Publication 550. The payer reports this on Form 1099-DIV. Ask a tax professional about your situation.
Do I receive the dividend if I hold unvested RSUs?
Generally, unvested RSUs are a right to receive shares in the future, not shares you already own. Whether you receive a cash dividend or a dividend equivalent depends on your plan documents. Vested shares you hold as a shareholder of record on the record date typically participate. Check with your plan administrator.
If I reinvest the dividend through a DRIP, do I still owe tax?
In a taxable account, dividends that are reinvested are generally still taxable in the year they are paid, even though you receive additional shares instead of cash. Dividends paid inside a tax-advantaged retirement account are typically treated under that account's rules. Your tax professional can help you plan for any tax due.
