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

Starbucks Co. (NASDAQ:SBUX) announced a quarterly dividend on Wednesday, April 2nd, RTT News reports. Shareholders of record on Friday, May 16th will be paid 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 yield of 2.45%.

Starbucks has increased its dividend payment by an average of 8.0% per year over the last three years and has increased 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. 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 Price Performance

Shares of NASDAQ SBUX opened at $99.41 on Thursday. The company has a 50-day moving average price of $105.84 and a 200-day moving average price of $99.54. The stock has a market capitalization of $112.92 billion, a P/E ratio of 32.07, a P/E/G ratio of 3.59 and a beta of 0.99. Starbucks has a 1 year low of $71.55 and a 1 year high of $117.46.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Tuesday, January 28th. The coffee company reported $0.69 earnings per share (EPS) for the quarter, beating 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 posted $0.90 earnings per share. As a group, equities research analysts anticipate that Starbucks will post 2.99 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research firms recently commented on SBUX. Stifel Nicolaus increased their price target on Starbucks from $110.00 to $114.00 and gave the company a “buy” rating in a research report on Monday, January 27th. UBS Group increased their target price on shares of Starbucks from $98.00 to $105.00 and gave the company a “neutral” rating in a report on Wednesday, January 29th. Wedbush boosted their price target on shares of Starbucks from $95.00 to $100.00 and gave the stock a “neutral” rating in a report on Wednesday, January 29th. Barclays increased their price objective on shares of Starbucks from $119.00 to $124.00 and gave the company an “overweight” rating in a research note on Wednesday, January 29th. Finally, BMO Capital Markets boosted their target price on Starbucks from $110.00 to $115.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 29th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating, eighteen have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $106.12.

Institutional Trading of Starbucks

A hedge fund recently raised its stake in Starbucks stock. Brighton Jones LLC increased its position in shares of Starbucks Co. (NASDAQ:SBUX) by 86.5% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 176,722 shares of the coffee company’s stock after acquiring 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 filing with the Securities and Exchange Commission. 72.29% of the stock is owned by institutional investors and hedge funds.

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.