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Starbucks (SBUX) Announces First Ever Dividend

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Starbucks SBUX Announces First Ever Dividend

Starbucks Corporation (Nasdaq: SBUX) announced that it would reward investors with the company's first ever cash dividend.

The dividend is part of the Starbucks Corporation's new plan to return 35% to 40% of the company's net income to shareholders.

Starbucks Corporation will pay its 1st quarterly dividend on April 23 to shareholders of record as of April 7.

Starbucks also announced that its board authorized a buyback of up to 15 million shares, in addition to 6.3 million shares that remain to be bought through an earlier repurchase plan.

The move recognizes Starbucks Corporation's transformation from a hot growth stock in the 90's to more mature, cash generating company with lower capital requirements.

The company is sitting on $1.3 billion of cash free cash flow is forecast at $1 billion this year.

The moves could pressure on other companies with large cash hoards, like Apple Inc. (Nasdaq: AAPL) and eBay Inc. (Nasdaq: EBAY) to begin returning income to shareholders.

Posted-In: Apple Inc. eBay Inc. Starbucks CorporationNews Dividends Buybacks Markets

 

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