Starbucks Corporation Plans Quarterly Dividend of $0.61 (NASDAQ:SBUX)

Starbucks Corporation (NASDAQ:SBUX - Get Free Report) announced a quarterly dividend on Wednesday, July 16th, RTT News reports. Investors of record on Friday, August 15th will be paid a dividend of 0.61 per share by the coffee company on Friday, August 29th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.63%.

Starbucks has a dividend payout ratio of 81.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. 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 Stock Performance

NASDAQ SBUX traded up $0.23 on Thursday, reaching $92.74. 4,509,067 shares of the stock traded hands, compared to its average volume of 10,775,178. Starbucks has a 12 month low of $72.73 and a 12 month high of $117.46. The company has a market cap of $105.39 billion, a price-to-earnings ratio of 33.60, a PEG ratio of 4.73 and a beta of 1.02. The company has a fifty day moving average price of $89.73 and a 200-day moving average price of $94.52.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its earnings results on Tuesday, April 29th. The coffee company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.51 by ($0.10). Starbucks had a negative return on equity of 42.14% and a net margin of 8.61%. The business had revenue of $8.76 billion for the quarter, compared to the consensus estimate of $8.90 billion. During the same quarter in the previous year, the company earned $0.68 earnings per share. The firm's revenue was up 2.3% on a year-over-year basis. As a group, research analysts anticipate that Starbucks will post 2.99 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Starbucks

A hedge fund recently raised its stake in Starbucks stock. Brighton Jones LLC grew its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 86.5% during the 4th quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 176,722 shares of the coffee company's stock after purchasing an additional 81,952 shares during the period. Brighton Jones LLC's holdings in Starbucks were worth $16,126,000 at the end of the most recent reporting period. 72.29% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. CICC Research initiated coverage on Starbucks in a report on Monday, June 30th. They set an "outperform" rating and a $100.00 target price for the company. JPMorgan Chase & Co. decreased their target price on shares of Starbucks from $105.00 to $100.00 and set an "overweight" rating for the company in a research report on Wednesday, April 30th. Jefferies Financial Group lowered shares of Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 price target on the stock. in a report on Thursday. The Goldman Sachs Group reissued a "neutral" rating and issued a $95.00 price objective (up previously from $85.00) on shares of Starbucks in a research report on Thursday, June 12th. Finally, BMO Capital Markets lowered their price target on Starbucks from $115.00 to $100.00 and set an "outperform" rating for the company in a report on Wednesday, April 30th. Four equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and fifteen have given a buy rating to the company. Based on data from MarketBeat.com, Starbucks presently has an average rating of "Hold" and a consensus target price of $98.85.

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.