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Costco increases dividend, announces share buyback
ISSAQUAH, Wash. — Wholesaler Costco on Tuesday said its board of directors has approved a $4 billion share buyback program. The company also raised its quarterly dividend by 17% to 24 cents, up from 20.5 cents.
The share buyback program expires in April 2015 and replaces a previous plan set to expire in July, which had $800 million remaining, the company said.
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Costco focuses on Rx as U.S. sales soar
Many analysts have voiced concern that despite numerous indications of a slow, but healthy, economic recovery in the United States, growth in the number of jobs has lagged, even as it has exceeded economists’ expectations.
But another indicator that the economy is picking up speed is U.S. sales growth at Costco Wholesale, the members-only mass merchandiser based in Issaquah, Wash. For fiscal 2010, sales at the company’s 424 U.S. stores — which the company officially calls warehouses — were $59.6 billion, compared with $56.5 billion in 2009.