Starbucks Co. Declares Quarterly Dividend of $0.57 (NASDAQ:SBUX)

Starbucks Co. (NASDAQ:SBUX) declared a quarterly dividend on Thursday, June 20th, RTT News reports. Shareholders of record on Friday, August 16th will be paid a dividend of 0.57 per share by the coffee company on Friday, August 30th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 2.86%.

Starbucks has increased its dividend payment by an average of 8.7% per year over the last three years and has raised its dividend annually for the last 14 consecutive years. Starbucks has a dividend payout ratio of 56.0% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Starbucks to earn $4.04 per share next year, which means the company should continue to be able to cover its $2.28 annual dividend with an expected future payout ratio of 56.4%.

Starbucks Trading Down 0.6 %

Shares of NASDAQ:SBUX opened at $79.72 on Friday. The company has a 50-day moving average price of $80.49 and a 200 day moving average price of $88.83. Starbucks has a 12 month low of $71.80 and a 12 month high of $107.66. The company has a market cap of $90.30 billion, a price-to-earnings ratio of 21.96, a PEG ratio of 1.75 and a beta of 0.96.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share for the quarter, missing the consensus estimate of $0.79 by ($0.11). The company had revenue of $8.56 billion for the quarter, compared to analysts’ expectations of $9.12 billion. Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The business’s quarterly revenue was down 1.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.74 EPS. As a group, equities analysts forecast that Starbucks will post 3.59 EPS for the current year.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Deutsche Bank Aktiengesellschaft lowered shares of Starbucks from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $108.00 to $89.00 in a research report on Wednesday, May 1st. JPMorgan Chase & Co. decreased their price target on Starbucks from $100.00 to $92.00 and set an “overweight” rating for the company in a research note on Wednesday, May 1st. Stifel Nicolaus cut their price objective on Starbucks from $90.00 to $80.00 and set a “hold” rating on the stock in a research report on Wednesday, May 1st. UBS Group decreased their target price on Starbucks from $95.00 to $85.00 and set a “neutral” rating for the company in a research report on Wednesday, May 1st. Finally, Oppenheimer reissued a “market perform” rating on shares of Starbucks in a research note on Friday, April 19th. Seventeen analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $95.00.

Insider Activity at Starbucks

In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction dated Monday, April 15th. The shares were sold at an average price of $85.39, for a total value of $277,517.50. Following the completion of the transaction, the chief executive officer now directly owns 81,199 shares in the company, valued at $6,933,582.61. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other Starbucks news, CFO Rachel Ruggeri sold 3,750 shares of the firm’s stock in a transaction that occurred on Wednesday, May 22nd. The shares were sold at an average price of $80.00, for a total value of $300,000.00. Following the completion of the sale, the chief financial officer now directly owns 65,431 shares in the company, valued at $5,234,480. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction on Monday, April 15th. The stock was sold at an average price of $85.39, for a total value of $277,517.50. Following the transaction, the chief executive officer now directly owns 81,199 shares in the company, valued at $6,933,582.61. The disclosure for this sale can be found here. Insiders have sold a total of 10,750 shares of company stock valued at $878,893 over the last quarter. 1.98% of the stock is owned by corporate insiders.

Starbucks Company Profile

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.