Starbucks Corporation (NASDAQ:SBUX) Declares $0.62 Quarterly Dividend

Starbucks Corporation (NASDAQ:SBUX) declared a quarterly dividend on Tuesday, December 2nd. Shareholders of record on Friday, February 13th will be given a dividend of 0.62 per share by the coffee company on Friday, February 27th. This represents a c) dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Friday, February 13th.

Starbucks has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 15 consecutive 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 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 $2.48 annual dividend with an expected future payout ratio of 67.8%.

Starbucks Stock Up 1.3%

Shares of Starbucks stock traded up $1.08 during trading hours on Wednesday, hitting $86.28. 2,409,415 shares of the company’s stock traded hands, compared to its average volume of 10,184,808. Starbucks has a twelve month low of $75.50 and a twelve month high of $117.46. The company has a market cap of $98.11 billion, a PE ratio of 52.57, a PEG ratio of 1.71 and a beta of 0.98. The stock has a 50 day simple moving average of $84.04 and a 200-day simple moving average of $87.70.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Wednesday, October 29th. The coffee company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.03). Starbucks had a net margin of 4.99% and a negative return on equity of 31.32%. The business had revenue of $9.57 billion during the quarter, compared to analysts’ expectations of $9.41 billion. During the same period in the prior year, the company posted $0.80 EPS. The company’s revenue for the quarter was up 5.5% on a year-over-year basis. As a group, equities research analysts predict that Starbucks will post 2.99 EPS for the current year.

Insider Buying and Selling

In related news, Director Jorgen Vig Knudstorp bought 11,700 shares of the company’s stock in a transaction on Monday, November 10th. The shares were purchased at an average cost of $85.00 per share, with a total value of $994,500.00. Following the completion of the transaction, the director directly owned 53,096 shares of the company’s stock, valued at approximately $4,513,160. This represents a 28.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.09% of the stock is currently owned by insiders.

Institutional Trading of Starbucks

Several hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in shares of Starbucks by 0.5% during the third quarter. Vanguard Group Inc. now owns 113,438,902 shares of the coffee company’s stock valued at $9,596,931,000 after buying an additional 577,279 shares during the last quarter. Capital Research Global Investors boosted its position in Starbucks by 11.4% during the 3rd quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock worth $7,229,968,000 after acquiring an additional 8,774,198 shares during the period. Capital World Investors boosted its position in Starbucks by 1.9% during the 3rd quarter. Capital World Investors now owns 77,720,137 shares of the coffee company’s stock worth $6,575,430,000 after acquiring an additional 1,462,874 shares during the period. State Street Corp grew its stake in shares of Starbucks by 1.2% in the second quarter. State Street Corp now owns 47,513,332 shares of the coffee company’s stock worth $4,353,647,000 after purchasing an additional 544,534 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of Starbucks by 0.4% during the second quarter. Geode Capital Management LLC now owns 25,846,634 shares of the coffee company’s stock valued at $2,357,815,000 after purchasing an additional 99,983 shares during the period. 72.29% of the stock is currently owned by institutional investors.

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.