Starbucks Corporation (NASDAQ:SBUX) Announces Quarterly Dividend of $0.62

Key Points

• Starbucks Corporation has announced a quarterly dividend of $0.62 per share, representing a 1.6% increase from the previous dividend of $0.61 and providing an annual yield of 2.9%.
• The company has a dividend payout ratio of 81.6%, indicating that dividends are currently covered by earnings, but future stability may depend on performance.
• Starbucks shares experienced a 0.2% decline in trading, with current shares priced at $84.40, amidst a market cap of approximately $95.94 billion.

Starbucks Corporation (NASDAQ:SBUX - Get Free Report) announced a quarterly dividend on Wednesday, October 1st, RTT News reports. Shareholders of record on Friday, November 14th will be given a dividend of 0.62 per share by the coffee company on Friday, November 28th. This represents a c) dividend on an annualized basis and a yield of 2.9%. This is a 1.6% increase from Starbucks's previous quarterly dividend of $0.61.

Starbucks has a dividend payout ratio of 81.6% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities analysts expect Starbucks to earn $3.66 per share next year, which means the company should continue to be able to cover its $2.44 annual dividend with an expected future payout ratio of 66.7%.

Starbucks Trading Down 0.2%

Shares of NASDAQ SBUX traded down $0.20 during mid-day trading on Wednesday, reaching $84.40. The company had a trading volume of 8,152,535 shares, compared to its average volume of 9,191,201. The firm has a 50 day simple moving average of $88.09 and a two-hundred day simple moving average of $88.80. The stock has a market cap of $95.94 billion, a P/E ratio of 36.38, a PEG ratio of 5.12 and a beta of 1.01. Starbucks has a 52-week low of $75.50 and a 52-week high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results on Tuesday, July 29th. The coffee company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.64 by ($0.14). Starbucks had a negative return on equity of 36.23% and a net margin of 7.18%.The firm had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.29 billion. During the same quarter last year, the business posted $0.93 EPS. The firm's revenue was up 3.8% on a year-over-year basis. On average, equities analysts expect that Starbucks will post 2.99 EPS for the current year.

Hedge Funds Weigh In On Starbucks

Hedge funds have recently added to or reduced their stakes in the company. Nuveen LLC acquired a new stake in shares of Starbucks in the first quarter worth $1,379,619,000. Norges Bank bought a new position in shares of Starbucks during the second quarter valued at $1,246,316,000. Jennison Associates LLC bought a new position in shares of Starbucks during the first quarter valued at $817,759,000. Polen Capital Management LLC bought a new position in shares of Starbucks in the first quarter valued at about $503,539,000. Finally, Corient Private Wealth LLC raised its holdings in shares of Starbucks by 146.6% in the second quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company's stock valued at $553,201,000 after buying an additional 3,596,014 shares during the last quarter. Institutional investors and hedge funds own 72.29% of the company's stock.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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