Street View: Costco's special dividend, $4 bln share buyback plan deliver early holiday cheer

** Shares of membership-only retailer Costco COST.O up ~1% at $1,080.83 premarket

** On Tuesday, co declared $30 per share special dividend and reauthorized $4 billion share repurchase program through November 2030, replacing the current program set to expire in January next year

** Median PT of 41 brokerages covering the stock is $1,097.50 - LSEG

** COST up about 23% YTD; S&P 500 Consumer Staples index up 18%, while Walmart up nearly 13% YTD

SPECIAL DIVIDEND REINFORCES CONFIDENCE IN COSTCO'S BUSINESS

** Telsey Advisory Group ("outperform", PT: $1,135) says co's special dividend comes as an early holiday gift for investors

** Jefferies ("buy", PT: $1,100) says strong execution, durable cash generation and shareholder returns continue to support Costco's appeal as a high-quality defensive stock

** Oppenheimer ("outperform", PT: $1,160) expects the special dividend to materially reduce interest income

** Still sees the potential for a stock split down the road, which could represent another positive catalyst for shares