Starbucks Co. (NASDAQ:SBUX) to Issue $0.61 Quarterly Dividend

Starbucks Co. (NASDAQ:SBUX) announced a quarterly dividend on Wednesday, April 2nd, RTT News reports. Stockholders of record on Friday, May 16th will be given a dividend of 0.61 per share by the coffee company on Friday, May 30th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.45%.

Starbucks has raised its dividend payment by an average of 8.0% annually over the last three years and has raised its dividend every year for the last 15 years. Starbucks has a payout ratio of 67.0% indicating that its dividend is sufficiently covered by earnings. Research 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 Up 1.2 %

Shares of Starbucks stock opened at $99.41 on Thursday. The company has a 50-day simple moving average of $105.84 and a two-hundred day simple moving average of $99.54. Starbucks has a twelve month low of $71.55 and a twelve month high of $117.46. The stock has a market capitalization of $112.92 billion, a price-to-earnings ratio of 32.07, a price-to-earnings-growth ratio of 3.59 and a beta of 0.99.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Tuesday, January 28th. The coffee company reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.68 by $0.01. Starbucks had a negative return on equity of 44.97% and a net margin of 9.73%. During the same quarter in the prior year, the company earned $0.90 EPS. On average, sell-side analysts anticipate that Starbucks will post 2.99 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on SBUX shares. BMO Capital Markets increased their price objective on shares of Starbucks from $110.00 to $115.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 29th. Royal Bank of Canada reissued an “outperform” rating and issued a $115.00 price objective on shares of Starbucks in a research note on Friday, January 24th. UBS Group boosted their price objective on shares of Starbucks from $98.00 to $105.00 and gave the company a “neutral” rating in a research report on Wednesday, January 29th. Argus upgraded Starbucks from a “hold” rating to a “buy” rating and set a $115.00 price target on the stock in a research note on Tuesday, March 18th. Finally, Wells Fargo & Company upped their price objective on Starbucks from $115.00 to $125.00 and gave the stock an “overweight” rating in a research report on Tuesday, February 25th. Three research analysts have rated the stock with a sell rating, six have given a hold rating, eighteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Starbucks has an average rating of “Moderate Buy” and a consensus target price of $106.12.

Institutional Trading of Starbucks

A hedge fund recently raised its stake in Starbucks stock. Brighton Jones LLC raised its stake in Starbucks Co. (NASDAQ:SBUX) by 86.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. 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 as of its most recent SEC filing. Institutional investors own 72.29% 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.