does costco have preferred stock — quick guide

Does Costco Have Preferred Stock?

As of January 22, 2026, according to Costco’s Form 10-K and investor relations materials, the short answer to "does costco have preferred stock" is: Costco’s charter authorizes preferred stock, but the company has no preferred shares outstanding. This article explains where that information appears in public filings, how dividends are reported, why a company might authorize preferred stock without issuing it, how investors can verify the status, and the practical implications for shareholders.

Quick point: does costco have preferred stock? Yes, it is authorized in the charter — but no, there are currently no outstanding preferred shares and Costco has historically paid dividends only on common stock.

Why this matters

Investors asking "does costco have preferred stock" are usually trying to understand Costco’s capital structure and dividend priority. Preferred stock — if issued — can carry fixed dividends and seniority in liquidation or other special rights. Because Costco has none outstanding today, preferred-stock-specific features do not affect current COST common shareholders. Still, knowing whether preferred stock is authorized and where to confirm its status is useful for due diligence and for interpreting third-party data that sometimes aggregates "common and preferred" dividends.

Legal Authorization and Charter Provisions

The company’s certificate of incorporation (or charter) and the disclosures in its SEC filings describe the authorized share structure. In Costco’s public filings the company states that a class of preferred stock is authorized, and the board of directors has the authority to issue preferred shares in one or more series and to set the terms of any series the board may issue.

When readers search "does costco have preferred stock," the relevant documents to consult include Costco’s certificate of incorporation (often summarized in the Form 10-K under "Description of Capital Stock"), the Form 10-K itself, and any exhibits that contain the articles of incorporation or bylaws. Those documents explain both the number and classes of authorized shares and grant the board flexibility to create series of preferred stock with differing rights and preferences.

Key points about authorization:

• Authorization means the company’s governing documents permit issuing preferred shares; it does not mean preferred shares have been issued.
• The board can typically set terms for any new series of preferred stock without a shareholder vote, depending on the charter and state law, which allows flexibility for financing or corporate defense measures.

Outstanding Preferred Stock — Current Status

To answer "does costco have preferred stock" precisely: Costco does not have any outstanding preferred shares as disclosed in its SEC filings and investor materials. Public statements in the Form 10-K typically include language such as "No shares of preferred stock are outstanding, and we have no present plan to issue any," or an equivalent disclosure in the equity section.

As of January 22, 2026, Costco’s most recent annual and quarterly reports (Form 10-K and Form 10-Q) show that the company has only common shares outstanding and that preferred stock — while authorized — is not issued. Investors should read the most recent filings to confirm whether that status changes in the future.

Historical Context and Any Past Issuances

Has Costco ever issued preferred stock in the past? The historical record in public filings shows no routine issuance of preferred shares by Costco. Historically, Costco has relied on retained earnings, debt markets, and equity (common stock) activities for capital needs, and its distributions to shareholders have taken the form of common dividends and occasional special cash dividends rather than preferred dividends.

If a company had issued preferred stock in the past, you would find references in old proxy statements, past Forms 10-K, or historical exhibits (e.g., prior certificate amendments). For Costco, such search and filings show no record of permanent outstanding preferred stock series that pay dividends or carry liquidation preferences.

It is also useful to distinguish one-off corporate distributions (for example, a special cash dividend to common shareholders) from preferred-stock payments. Special dividends paid to common shareholders do not imply the existence of preferred stock.

Dividends — Preferred vs. Common

When people ask "does costco have preferred stock?", they often want to know whether the company pays preferred dividends. Because there are no preferred shares outstanding, Costco’s dividend payments have been solely on common stock.

A few important reporting notes:

• Costco reports common cash dividends in its investor relations dividend history and in the consolidated statement of cash flows and notes.
• Many third-party data aggregators and analytics services display a combined metric called "total common & preferred dividends" or a similarly named field. For companies with no preferred shares outstanding, that aggregated metric will simply reflect common dividends (preferred dividend component = zero).
• If preferred shares are later issued, preferred dividends (if declared) would typically be recorded and disclosed separately or explained in the equity footnotes and in the cash flow statements (financing activities or changes in equity disclosures), depending on accounting presentation.

Because Costco has historically paid quarterly common dividends and occasionally special dividends, investors reviewing dividend yield or payout measures should confirm whether the data provider separates common and preferred components or shows them combined. This prevents confusion for anyone searching "does costco have preferred stock" when confronted with combined dividend metrics.

Rights, Preferences, and Potential Terms of Preferred Stock

While Costco has not issued preferred shares, the company’s charter authorizes the board to create series of preferred stock with customized rights. Common rights and preferences the board could attach to a series include:

• Dividend priority: preferred dividends can be set to receive cash or cumulative dividends before common shareholders.
• Liquidation preference: preferred shares can be given priority over common stock holders in the event of liquidation or sale.
• Conversion features: preferred shares can sometimes be convertible into common stock at defined rates or upon certain triggers.
• Voting rights: preferred stock can be non-voting, limited voting, or carry special voting rights depending on the series.
• Redemption provisions: the issuer may retain the right to redeem preferred shares at specified prices or after specified dates.

If Costco’s board were to issue a series of preferred stock, the exact terms would be set in a board resolution and disclosed in SEC filings. The terms determine how preferred stock behaves relative to common stock, including the impact on dividends and liquidation.

Why a Company Might Authorize But Not Issue Preferred Stock

It is common corporate practice to authorize preferred stock even when none is outstanding. The primary reasons include:

• Flexibility for future financing: authorized but unissued preferred shares give the board the option to raise capital quickly without needing to amend the charter.
• M&A and strategic transactions: preferred stock can be used as a bargaining or structuring tool in acquisitions or strategic financings.
• Anti-takeover or defensive measures: preferred stock, often coupled with special terms, can be used to structure defenses against hostile bids (e.g., creating shares with special votes or dividend terms).
• Non-dilutive instruments for common shareholders: structured preferred series can sometimes raise capital while protecting voting power of existing common holders, depending on terms.

For Costco, keeping preferred stock authorized provides optionality while preserving the current capital structure. Issuing preferred stock would change priorities in dividends and liquidation and could dilute the economic or voting position of common shareholders depending on the terms.

How to Verify Current Preferred Stock Status (Practical Steps)

If you or another investor want to confirm whether Costco has preferred shares outstanding — or whether the company has issued a new series — perform the following checks:

1. Read the latest Form 10-K: the equity section and "Description of Capital Stock" or similar exhibit will indicate whether preferred shares are authorized and whether any are outstanding.
2. Check recent 10-Qs and 8-Ks: issuances or amendments affecting capital structure are often disclosed in current reports (8-K) and quarterly filings.
3. Review the proxy statement (DEF 14A): shareholder materials sometimes describe charter amendments or authorized capital used for compensation plans or other corporate purposes.
4. Visit Costco’s investor relations site: dividend history, FAQs, and press releases provide additional confirmation about dividends and capital actions.
5. Search SEC EDGAR: the company’s filings (10-K, 8-K, certificates of amendment) will show any changes or issuance of preferred shares.
6. Contact the transfer agent: the transfer agent is named in the 10-K or investor site and can confirm outstanding share counts and classes (e.g., examples of transfer agents include Computershare, though the exact agent is listed in Costco’s filings).
7. Review financial statement footnotes: the equity footnotes in audited financials disclose rights, preferred dividend accruals (if any), and preferred share balances.

Following these steps answers the question "does costco have preferred stock" definitively for the current reporting period.

Market and Accounting Reporting Notes

Third-party data providers often present combined fields such as "total common & preferred dividends" or similar aggregated measures. When preferred dividends are zero, such a combined field equals the common dividend amount, but the label can create confusion for readers trying to determine whether preferred stock is present.

Where preferred dividends would appear in the financial statements if they existed:

• Statement of Cash Flows: dividends paid appear under financing activities; if the company distinguishes preferred vs. common, that may be explained in the notes.
• Notes to the financial statements: the equity section and related notes describe classes of stock, dividend rights, liquidation preferences, and balances of preferred shares.
• Statement of Changes in Equity: separate columns are often used for preferred and common equity when both exist.

Analysts and investors should consult primary filings rather than relying solely on aggregator labels to answer "does costco have preferred stock," because aggregators may not separate components or may use legacy field names that include both categories by design.

Implications for Investors

Because Costco has no outstanding preferred stock at this time, preferred-stock-specific considerations do not apply to current COST shareholders. Practical implications include:

• Dividend expectations: Costco’s dividend policy and declarations have applied to common shares; preferred-style fixed dividends are not part of the current capital structure.
• Liquidation and bankruptcy priority: common shareholders remain subject to the usual priority schedule; there are no preferred claims ahead of common equity based on currently outstanding securities.
• Dilution risk: while preferred shares are authorized, issuance in the future could dilute common shareholders economically or affect dividends depending on terms.
• Reporting and valuation: models should not assume preferred yields for Costco unless and until the company issues such securities and discloses their terms.

Investors concerned about future issuance should monitor SEC filings and investor communications. Any material issuance of preferred stock would be disclosed publicly and would typically involve a description of terms that clarifies dividend rates, conversion rights, and other investor-relevant details.

Example: Why Third-Party Data Can Confuse the Question "Does Costco Have Preferred Stock"

A common point of confusion arises when users of financial websites see a field labeled "total common & preferred dividends" and assume the presence of preferred stock when none exists. Data vendors use combined field names for uniformity across companies. For a company like Costco, the preferred component is simply zero, so the combined metric equals the common dividend total.

When researching "does costco have preferred stock," check the notes or the detailed dividend breakdown on the investor relations site or the company’s filings. That will show whether the preferred component exists or is nil.

Updating and Monitoring — Keep This Entry Current

Authorized-but-unissued preferred stock is a standing matter of record until the company amends its charter. Any issuance of preferred stock would typically appear in an 8-K (for material issuer actions), an amended certificate of incorporation filed as an exhibit to an SEC filing, or in the next periodic report (10-Q/10-K). For ongoing accuracy on the question "does costco have preferred stock", review the latest filings and investor announcements.

Practical monitoring checklist:

• Watch for 8-K filings announcing new securities or amendments.
• Check the next annual Form 10-K for changes to authorized capital.
• Review investor relations press releases for new financing or capital structure news.

See Also

• Corporate capital structure (general concepts)
• Preferred stock (overview of rights and types)
• How to read an SEC Form 10-K
• Shareholder rights and dividend policy

References and Source Documents

This article is based on Costco’s public filings and investor relations materials, and on how third‑party data aggregators label dividend metrics. For primary verification, consult:

• Costco’s Form 10-K and public filings available on SEC EDGAR (see the most recent annual report and exhibits for the certificate of incorporation and equity disclosures).
• Costco investor relations (dividend history and investor FAQs) for the company’s dividend disclosures and shareholder communications.
• Data aggregators and financial databases that present combined "common & preferred" dividend fields — useful for understanding reporting conventions but not a substitute for primary filings.

As of January 22, 2026, according to Costco’s Form 10-K and investor relations materials, there are no preferred shares outstanding.

Practical Takeaway

If your immediate question is simply "does costco have preferred stock?" — the concise response is:

• The charter authorizes preferred stock, but there are currently no preferred shares outstanding.
• Costco’s cash distributions have been to common shareholders (regular quarterly dividends and occasional special dividends).
• To remain certain about the current status, check the latest Form 10-K, current reports (8-K), and investor relations statements.

For further reading on related market mechanics or to explore custodial or trading solutions for equities and other assets, consider learning more about Bitget’s trading and wallet services and how exchanges and custodial providers present equity data and dividend histories.

Note: This article is informational and based on public filings and investor materials as of the date stated above. It is not investment advice. Always consult primary filings and qualified professionals for decisions.