Categories: DividendsRetail

Starbucks Raises Dividend 23.81% to 26 Cents a Share

Randy Robertson, CC BY 2.0

Starbucks Raises Dividend 23.81% to 26 Cents a Share (Nasdaq)

Seattle-based beverage chain Starbucks Corporation (SBUX) boosted its dividend 23.81% from the same period last year to 26 cents a share and will make the payment on Feb. 21 to investors of record as of yesterday. Starbucks , with a yield of roughly 1.5%, also has ambitious international growth plans and new product launches that make it an attractive stock for investors seeking capital appreciation, as well as income. SBUX’s current earnings per share, an indicator of a company’s profitability, is $2.40. Zacks Investment Research reports the company’s forecasted earnings growth in 2014 as 20.76%, compared to an industry average of 6.5%. Starbucks also is engaged in a stock buyback program to further boost the value of its shares. The company repurchased 0.6 million shares of common stock in Q1 FY14, leaving approximately 26 million shares available for purchase under previous authorizations.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.