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Costco is Paying Dividends in February - Here’s How Much 100 Shares Pay

Costco's growing dividend and strong stock performance show why consistency rewards shareholders.

By Jordan Major

Edited by Kristy DeSmit

Updated Feb. 16, 2026

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Costco Wholesale (NASDAQ:COST) doesn't usually make headlines for flashy dividend yields. Instead, it's known for something far more powerful: consistency. And in February 2026, that consistency is on full display as Costco rewards shareholders once again.

The warehouse giant is paying its regular quarterly dividend this month, and for long-term investors, it's a reminder that Costco's appeal goes beyond rising share prices and into dependable returns backed by a resilient business model and smart money moves Costco investors tend to value.

Here's how much the February dividend pays, what 100 shares are worth in income, and why Costco continues to stand out in 2026.

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How much Costco pays in dividends

Costco currently pays a quarterly dividend of $1.30 per share, following its most recent increase. That means shareholders receive $5.20 per share annually, assuming the dividend remains unchanged.

For investors holding 100 shares of Costco, the February payment works out to $130 per quarter and $520 per year.

While that may not rival high-yield dividend stocks, Costco's payout is designed to complement long-term growth rather than replace it. For many investors, that balance is exactly the point.

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Costco's strong start to 2026

Costco stock has gotten off to an impressive start in 2026. COST shares are trading just under $1,000, and as of early February, the stock is up more than 16% year-to-date, significantly outperforming the broader market.

That performance builds on an already strong track record. Over the past five years, Costco shares are up well over 180%, and over the past decade, the company has delivered average annual returns north of 20%. Few large retailers can match that kind of consistency.

What's driving the momentum? Costco continues to benefit from high membership renewal rates, steady traffic, and disciplined pricing, even as inflation and shifting consumer behavior challenge much of the retail sector.

Investors will also be watching Costco's upcoming earnings report on March 5, which could shape how the stock trades in the near term. In December, the company reported net sales growth of more than 8% year-over-year, along with a consistently high membership renewal rate of around 90%.

Why Costco's dividend keeps growing

Costco has been increasing its dividend for more than two decades, and the company's ability to raise dividends is closely tied to its business model.

Costco generates a large portion of its profit from membership fees, not product markups. Most items are marked up by no more than around 14% to 15%, which keeps prices competitive and customers loyal. Membership revenue provides a predictable, recurring cash flow, making it easier for the company to plan long-term and return capital to shareholders.

That stability has allowed Costco to increase its dividend consistently while also reinvesting in new warehouses, supply chain improvements, and employee compensation.

What about a Costco stock split?

With Costco shares trading near four digits, speculation about a potential stock split has been growing. The company hasn't split its stock since 2000, when shares were trading at a fraction of today's price.

A stock split wouldn't change Costco's underlying value or its dividend in dollar terms, but it could lower the per-share price, making the stock feel more accessible to smaller investors. Psychologically, many investors prefer owning whole shares rather than fractional ones, even though the math works out the same.

Whether or not a split happens in 2026, it's worth remembering that Costco's past success hasn't depended on splits. The stock has delivered strong returns through steady execution, not financial engineering.

Past performance puts the dividend in context

Costco's dividend yield is modest compared with high-yield stocks, but the total return picture tells a different story. Over time, investors have benefited from a combination of rising share prices, regular dividend increases, and occasional special dividends in strong cash-flow years.

That blend has helped Costco reward long-term shareholders without stretching its balance sheet or compromising its business fundamentals.

For investors who prioritize dividend safety and growth over headline yield, Costco has historically fit the bill.

Is Costco stock still worth owning?

For pure income seekers, Costco may not be the first stock that comes to mind. But for investors looking for reliable dividends paired with strong long-term growth, it remains interesting.

The company pays above-average wages, which reduces employee turnover and improves customer experience. It keeps prices low, which drives loyalty. And it runs a tight operation that consistently converts revenue into cash.

That combination has allowed Costco to increase its dividend while also delivering market-beating returns, a rare feat in retail.

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Bottom line

Costco's February dividend won't make anyone rich overnight, but it's a clear signal of financial strength. With shares near $1,000, rising dividends, and ongoing speculation about a potential stock split, Costco continues to attract attention in 2026, particularly for investors looking to build wealth.

On 100 shares, the $130 quarterly payout adds meaningful income to a stock that's already delivering solid performance this year.

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