Starbucks Co. (NASDAQ:SBUX) Announces Quarterly Dividend of $0.61

Starbucks Co. (NASDAQ:SBUX) declared a quarterly dividend on Tuesday, October 22nd, RTT News reports. Investors of record on Friday, November 15th will be given a dividend of 0.61 per share by the coffee company on Friday, November 29th. This represents a $2.44 dividend on an annualized basis and a yield of 2.52%. This is an increase from Starbucks’s previous quarterly dividend of $0.57.

Starbucks has raised its dividend payment by an average of 8.7% per year over the last three years and has raised its dividend every year for the last 14 years. Starbucks has a dividend payout ratio of 58.6% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Starbucks to earn $3.86 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 59.1%.

Starbucks Trading Up 0.4 %

Shares of NASDAQ SBUX opened at $96.82 on Wednesday. Starbucks has a twelve month low of $71.55 and a twelve month high of $107.66. The firm has a 50-day moving average of $95.31 and a two-hundred day moving average of $84.80. The company has a market capitalization of $109.67 billion, a price-to-earnings ratio of 26.67, a PEG ratio of 2.14 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last released its earnings results on Tuesday, July 30th. The coffee company reported $0.93 EPS for the quarter, meeting the consensus estimate of $0.93. The business had revenue of $9.11 billion during the quarter, compared to analyst estimates of $9.25 billion. Starbucks had a net margin of 11.16% and a negative return on equity of 49.38%. The business’s quarterly revenue was down .6% on a year-over-year basis. During the same period in the prior year, the business earned $1.00 earnings per share. As a group, research analysts predict that Starbucks will post 3.55 earnings per share for the current year.

Analyst Ratings Changes

SBUX has been the topic of a number of recent research reports. Sanford C. Bernstein upgraded Starbucks from a “market perform” rating to an “outperform” rating and lifted their target price for the stock from $92.00 to $115.00 in a report on Thursday, September 26th. Barclays lifted their price target on Starbucks from $93.00 to $110.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 14th. Piper Sandler upgraded shares of Starbucks from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $85.00 to $103.00 in a report on Tuesday, August 13th. Morgan Stanley boosted their price target on shares of Starbucks from $98.00 to $115.00 and gave the company an “overweight” rating in a report on Wednesday, October 16th. Finally, Bank of America reduced their price target on shares of Starbucks from $118.00 to $117.00 and set a “buy” rating for the company in a research report on Tuesday. Two analysts have rated the stock with a sell rating, ten have issued a hold rating, sixteen have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Starbucks currently has an average rating of “Moderate Buy” and a consensus price target of $102.20.

Insider Buying and Selling at Starbucks

In other Starbucks news, Director Jorgen Vig Knudstorp purchased 380 shares of the company’s stock in a transaction dated Friday, September 6th. The shares were bought at an average price of $91.50 per share, for a total transaction of $34,770.00. Following the purchase, the director now directly owns 36,242 shares in the company, valued at $3,316,143. This trade represents a 0.00 % increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. In other Starbucks news, Director Jorgen Vig Knudstorp bought 380 shares of the stock in a transaction on Friday, September 6th. The shares were purchased at an average cost of $91.50 per share, with a total value of $34,770.00. Following the completion of the transaction, the director now directly owns 36,242 shares of the company’s stock, valued at $3,316,143. This represents a 0.00 % increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $94.03, for a total value of $305,597.50. Following the completion of the sale, the chief executive officer now directly owns 75,054 shares of the company’s stock, valued at $7,057,327.62. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.98% of the company’s stock.

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.