Costco to Pay $7 Shareholder Dividend in Advance of Tax Change: Rude or Shrewd? - Sammamish-Issaquah Patch, WA Patch
Gregory Alan Bolcer stashed this in Dangerous Decisions
In order to avoid a massive selloff of their stock, Costco pays a special dividend to shareholders to keep them from dumping their stock in anticipation of the massive dividend tax hike.
What sort of mayhem is being created where taking on debt--though debt that is easily repaid from future revenues for them in particular--in order to prevent an economic meltdown which might constrain their future business. If someone as big as Costco isn't immune to this, just think of all the smaller, struggling companies that can't respond in the same way.
We're truly in a crazy economic dynamic.