Another Reason to Love Costco
Published Thu, 28 Apr 2011 on The Motley Fool

Last December, I bought shares of Costco (Nasdaq: COST) for my Rising Star portfolio. A major part of my investing thesis was that Costco is a gold standard company that treats its various stakeholders well. Yesterday, the warehouse retailer further confirmed that rosy opinion by announcing a dividend hike and share buyback. Some people perceive dividends as votes of confidence. One writer for Investors Business Daily recently interpreted "bold" dividend hikes from the likes of Wynn Resorts (Nasdaq: WYNN), PNC Financial Services (NYSE: PNC) , and Ingersoll-Rand (NYSE: IR) as signs of an upbeat economic outlook. That may be true, but dividends and buybacks don't guarantee impending financial success.... Read more