President Barack Obama’s re-election will be better for businesses than a country led by Mitt Romney, Jim Sinegal, co-founder of Costco Wholesale Corp. (COST), said during a speech at the Democratic National Convention.
Companies need “a president who takes the long view and makes the tough decisions,” said Sinegal, who remained on the board of the largest U.S. warehouse-club chain after retiring as its chief executive officer in January. “That’s why I am here tonight supporting President Obama, a president making an economy built to last.”
Costco Wholesale, the warehouse merchant, announced Wednesday that it will pay a special $3 billion dividend before year’s end, saving shareholders from a big bite should taxes rise due to the fiscal cliff.
The company said the $7-a-share payment is possible due to its strong balance sheet and its good access to capital. The payment will be in addition to the regular 27.5 cent a share dividend that will be paid on Nov. 30.
The special dividend will be paid Dec. 18 to shareholders of record on Dec. 10. That will allow investors to pay the lower 15% tax rate currently in effect on dividends.
Actions speak louder than words, don’t they?