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

Starbucks Corporation (NASDAQ:SBUX) declared a quarterly dividend on Wednesday, July 1st. Investors of record on Friday, August 14th will be given 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 of this dividend is Friday, August 14th.

Starbucks has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 15 consecutive 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 Stock Up 1.2%

SBUX stock opened at $103.39 on Thursday. The firm has a market cap of $117.83 billion, a price-to-earnings ratio of 78.33, a PEG ratio of 2.03 and a beta of 0.98. The company’s fifty day simple moving average is $101.74 and its 200 day simple moving average is $96.26. Starbucks has a 12-month low of $77.99 and a 12-month high of $108.88.

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

Insider Buying and Selling

In other news, EVP Sara Kelly sold 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total transaction of $210,000.00. Following the transaction, the executive vice president directly owned 57,653 shares of the company’s stock, valued at $6,053,565. This represents a 3.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total transaction of $233,621.49. Following the completion of the sale, the chief executive officer directly owned 81,559 shares of the company’s stock, valued at approximately $8,548,198.79. The trade was a 2.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,687 shares of company stock worth $863,707 over the last ninety days. 0.03% of the stock is owned by insiders.

Institutional Investors Weigh In On Starbucks

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Sunbelt Securities Inc. lifted its holdings in shares of Starbucks by 1.0% in the first quarter. Sunbelt Securities Inc. now owns 9,473 shares of the coffee company’s stock valued at $849,000 after purchasing an additional 97 shares in the last quarter. Beta Wealth Group Inc. grew its holdings in Starbucks by 1.7% during the first quarter. Beta Wealth Group Inc. now owns 6,114 shares of the coffee company’s stock worth $548,000 after buying an additional 103 shares in the last quarter. NWF Advisory Services Inc. raised its position in Starbucks by 2.6% in the 4th quarter. NWF Advisory Services Inc. now owns 4,349 shares of the coffee company’s stock valued at $366,000 after buying an additional 109 shares during the last quarter. Godshalk Welsh Capital Management Inc. lifted its stake in Starbucks by 0.8% during the 1st quarter. Godshalk Welsh Capital Management Inc. now owns 13,610 shares of the coffee company’s stock valued at $1,219,000 after acquiring an additional 110 shares in the last quarter. Finally, Eastern Bank lifted its stake in Starbucks by 0.9% during the 2nd quarter. Eastern Bank now owns 13,115 shares of the coffee company’s stock valued at $1,340,000 after acquiring an additional 111 shares in the last quarter. Institutional investors and hedge funds own 72.29% of the company’s stock.

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.