Costco Joins $166 B Tariff Refund Lawsuit and Boosts Dividend 11%
CBP launched the CAPE system on April 20 to process $166 billion in refunds for importers after a Supreme Court ruling, and Costco joined a lawsuit to secure its share of the payouts. Costco also announced an 11% increase to its quarterly dividend, marking another boost to shareholder returns.
1. Tariff Refund Mechanism and Costco Lawsuit
On April 20, U.S. Customs and Border Protection launched the Consolidated Administration and Processing of Entries (CAPE) portal to distribute roughly $166 billion in refunds for IEEPA-era tariffs struck down by the Supreme Court. Only importers of record can claim rebates, prompting Costco to join FedEx, Mondelez and Gap in suing to preserve their refund rights; refunds are expected to land in 60 to 90 days, barring claim errors.
2. Dividend Hike Strengthens Shareholder Yield
Costco approved an 11% increase to its quarterly dividend, the third hike over the past two years, reflecting robust cash flow and confidence in ongoing membership-driven sales growth. The raise positions Costco among a select group of retailers delivering double-digit dividend growth, supporting its appeal to income-focused investors.