Starbucks Raises Dividend 23.81% to 26 Cents a Share
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.