American multinational chain of coffeehouses Starbucks Corporation (SBUX) has announced a quarterly dividend of $0.49 per share, an increase of about 9% from the previous dividend of $0.45.
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Following the news, shares of the company gained marginally to close at $112.40 in extended trade on Wednesday.
The dividend will be paid on November 26, 2021, to shareholders of record as of November 12, 2021.
The company’s annual dividend of $1.96 per share now reflects a dividend yield of 1.7% based on Wednesday’s closing price.
Notably, the company has been raising its quarterly dividend consistently over the past five years, making it an attractive choice for investors. (See Starbucks stock chart on TipRanks)
Recently, Stifel Nicolaus analyst Christopher O`Cull reiterated a Buy rating on the stock. The analyst, however, lowered the price target to $130 from $135, which implies upside potential of 15.9% from current levels.
According to the analyst, the recent lockdowns in China could have an adverse impact on the company’s upcoming fourth-quarter results. The analyst, however, believes the effect will not transfer to 2022.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 12 Buys and 5 Holds. The average Starbucks price target of $132.14 implies that the stock has upside potential of 17.8% from current levels.
Starbucks scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 30.6% over the past year.
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