New York, Jan 16, 2026, 12:15 EST — Regular session
Costco Wholesale shares edged lower on Friday as investors took in the company’s latest dividend declaration, with the broader market little changed.
The warehouse retailer’s stock was down about 0.1% at $955.35 in midday trade, lagging a flat S&P 500. Walmart and Target were also down, while BJ’s Wholesale slid more than 1%.
The timing matters because Costco’s next monthly sales snapshot is close. The company is scheduled to release January sales results on Feb. 4, an update traders use as an early read on store traffic and demand before the next earnings report. (Costco)
The dividend itself is not a surprise for a steady cash generator, but it keeps the focus on what investors are paying for in retail right now: repeat business, predictable fees and less drama in the numbers.
Costco said its board declared a quarterly cash dividend of $1.30 per share, payable on Feb. 13 to shareholders of record as of Jan. 30. At Friday’s price, that’s an annualized $5.20 dividend, or roughly a 0.5% yield. The company said it operates 923 warehouses worldwide. (Costco)
A separate regulatory filing showed some insider selling. Executive Vice President James C. Klauer sold 1,500 Costco shares at $939 on Jan. 14, a Form 4 filing showed — the document insiders file with the U.S. SEC to disclose stock trades. (SEC)
Wall Street remains split on how much to pay for the name. Bernstein analyst Zhihan Ma argued this week that wide valuation gaps across retailers can be justified by growth and profitability, and described Costco as an “ultimate compounder,” according to a Barron’s report. (Barron’s)
Costco’s monthly sales updates have carried extra weight since the company reported December net sales rose 8.5% to $29.86 billion in the five weeks ended Jan. 4. (Costco)
But the premium multiple cuts both ways. Any sign of softer comparable sales, higher wage and freight costs, or a hit from currency and gasoline price swings could sting a stock that investors often treat as a safe place to hide.
The next hard catalyst is the fiscal second-quarter earnings call on March 5, scheduled after the U.S. market close. (Costco)
