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

Starbucks Corporation (NASDAQ:SBUX) announced a quarterly dividend on Wednesday, July 1st. Stockholders 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) dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, August 14th.

Starbucks has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 15 years. Starbucks has a dividend 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 fall. Equities 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 Trading Up 0.8%

Shares of Starbucks stock opened at $104.26 on Thursday. The company has a market cap of $118.82 billion, a PE ratio of 79.10, a price-to-earnings-growth ratio of 2.03 and a beta of 0.98. Starbucks has a 1-year low of $77.99 and a 1-year high of $108.88. The company has a 50 day moving average of $101.74 and a 200-day moving average of $96.26.

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

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on SBUX shares. Zacks Research cut shares of Starbucks from a “strong-buy” rating to a “hold” rating in a report on Monday. Robert W. Baird raised their price objective on shares of Starbucks from $112.00 to $117.00 and gave the company an “outperform” rating in a research report on Wednesday, April 29th. The Goldman Sachs Group downgraded Starbucks from a “neutral” rating to a “neutral” rating in a research report on Thursday, May 14th. Evercore increased their price objective on Starbucks from $110.00 to $115.00 and gave the company an “outperform” rating in a research report on Wednesday, April 29th. Finally, Citizens Jmp initiated coverage on Starbucks in a report on Monday, March 30th. They issued an “underperform” rating and a $84.00 price objective on the stock. Nineteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $108.92.

About Starbucks

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.