Starbucks Announces First Ever Cash Dividend; Authorizes Additional Share Buyback
Company to Outline its Strategy for Profitable Growth at Annual Meeting of Shareholders
Starbucks Corporation (NASDAQ:SBUX) today announced that its Board of Directors has approved the initiation of a cash dividend to its shareholders. The quarterly dividend of $0.10 per share will be paid on April 23, 2010, to shareholders of record on the close of business on April 7, 2010. While future dividends will be subject to Board approval, Starbucks announced that it is initially targeting a dividend payout range of 35 percent to 40 percent of net income.
“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.”
Starbucks Board of Directors has also authorized the repurchase of 15 million shares of the Company’s common stock. This authorization is in addition to 6.3 million shares that remain available for repurchase under previous authorizations.
“We are confident in the overall financial strength of our business and the strong cash flow it continues to generate,” said Troy Alstead, executive vice president and cfo. “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.”
