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

Starbucks Corporation (NASDAQ:SBUX) declared a quarterly dividend on Wednesday, July 1st. Shareholders of record on Friday, August 14th will be paid a dividend of 0.62 per share by the coffee company on Friday, August 28th. This represents a c) annualized dividend and a yield of 2.4%. The ex-dividend date is Friday, August 14th.

Starbucks has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 15 years. Starbucks has a payout ratio of 82.9% meaning 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 $3.07 per share next year, which means the company should continue to be able to cover its $2.48 annual dividend with an expected future payout ratio of 80.8%.

Starbucks Price Performance

NASDAQ SBUX opened at $103.39 on Thursday. The business has a fifty day moving average price of $101.74 and a two-hundred day moving average price of $96.26. The stock has a market capitalization of $117.83 billion, a PE ratio of 78.33, a PEG ratio of 2.03 and a beta of 0.98. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $108.88.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.06. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The company had revenue of $9.53 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same quarter last year, the company posted $0.41 EPS. The company’s revenue for the quarter was up 8.8% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, sell-side analysts expect that Starbucks will post 2.4 earnings per share for the current year.

Analyst Upgrades and Downgrades

SBUX has been the subject of several research analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of Starbucks in a research note on Wednesday, April 22nd. DA Davidson lifted their price target on shares of Starbucks from $97.00 to $102.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Wedbush assumed coverage on shares of Starbucks in a research report on Thursday, May 14th. They set an “outperform” rating for the company. BTIG Research downgraded shares of Starbucks from a “buy” rating to a “neutral” rating in a research note on Thursday, May 14th. Finally, Guggenheim reaffirmed a “neutral” rating and set a $97.00 target price (up from $95.00) on shares of Starbucks in a research note on Wednesday, April 29th. Nineteen investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Starbucks has a consensus rating of “Moderate Buy” and a consensus price target of $108.92.

Starbucks Company Profile

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.