Starbucks to Pay First Ever Dividend

At the beginning of year, I said that this is the year that investors will rediscover dividends. I’m happy to see that Starbucks (SBUX) has said that it will issue its first ever dividend payment.
Next month, the coffee stock will pay 10 cents a share to its shareholders. That translates to a dividend yield of…not much…about 1.6%. Still, it’s something. The company has said that it plans to pay out about 35% to 40% of its net income in the form of dividends. I think this is a good move.
What’s not a good move is that the company is also going to buyback shares. As a shareholder (I don’t own SBUX), I’d much rather have some tangible. Still, I’m happy to welcome SBUX to the world of dividend payers. As far as the stock goes, it’s way too pricey right now.

Posted by on March 24th, 2010 at 8:43 am


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