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Costco Whole Corporation most recently paid dividends in May of 2023. They paid $1.02 per share. (n.d.) I found it worth noting that this was the first dividend they have paid over the $1 mark, aside from the special dividends they have paid four separate times since 2012. The four special dividends they have paid include $7 in December of 2012, $5 in February of 2015, $7 in May of 2017, and $10 in December of 2020. (Redman, 2021) Costco Wholesale Corporation has not had a stock split since January of 2000, which was a 2 for 1. (n.d.) I also found an article from Costco Wholesale Corporation dated January of this year that the Board of Directors has reauthorized a common stock repurchase program of up to $4 billion that will run through January of 2027. (2023)

When Costco Wholesale Corporation repurchases their own shares, this leaves less shares in circulation on the market. Because the total number of shares available on the market is decreased, this in turn increases the ownership stake of the shareholders. What I found interesting about the buyback plan Costco announced is that the new repurchase plan was going to replace one set to expire in April of 2023. That plan was also for $4 billion yet only $1.4 billion has been repurchased.

If Costco were to stock split, there would need to be an entry made to note the change in the number of the shares available. A stock split does not change the value of the company, it dilutes the value of each share and because of this, the overall value of shareholder equity one holds would be unchanged.

In the period between declaring a dividend payment and the actual date of payment, Costco would debit retained earnings and credit dividends payable (a liability account). (Banton, 2022) On the date of payment, Costco would reverse the dividend payable by debiting it and credit the cash to account for the payment of cash.