Starbucks to pay first ever cash dividend
March 24, 2010
by Eric Schroeder
SEATTLE — The board of directors of Starbucks Corp. has approved a 10c per share quarterly dividend to be paid April 23 to shareholders of record as of the close of business on April 7. The move marks the company’s first cash dividend payout. Going forward, the company said it is targeting a dividend payout range of 35% to 40% of net income.
The company also said its board of directors approved a plan to buy back 15 million shares — in addition to the 6.3 million shares the company still has remaining authorization to buy under a previous effort.
“We are confident in the overall financial strength of our business and the strong cash flow it continues to generate,” said Troy Alstead, chief financial officer. “Starbucks solid cash position and cash flow outlook enable the company to invest in future profitable growth through stores, innovation and new platforms, while also returning cash to our shareholders through the initiation of a dividend and future share repurchases.”