Is A Starbucks Dividend Percolating?
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), Starbucks, Starbucks Coffee, quarterly dividend, Dividend Genius, dividend stock, stock dividend, dividend stocks, stock dividends
With its growth-stock days arguably behind it, Starbucks (Nasdaq: SBUX
) should be looking for new ways to reward shareholders and apparently the company is as there is talk the company's first-ever dividend may be among the marquee announcements coming out of Wednesday's analyst meeting. To be fair, Starbucks shares have more than doubled in the past year, so at this point, a dividend would be icing on the cake.
Seattle-based Starbucks was vigilant in cutting costs last year, paring some $600 million in expenses as expansion plans were scaled back. In addition, the company expects to generate $1 billion in free cash flow this year. That would enable Starbucks to pay a dividend with a yield of about 2%, according to some analysts that follow the company.
Starbucks' new growth initiatives focus more on licensing agreements than new store openings and that is a move that is will help the company with its robust free cash flow production. One thing to note: This is speculation until the company says otherwise. After all, Starbucks notes on its investor relations Web site that it “presently intends to retain earnings to finance the company's growth.” Have You Checked Out Our FREE Trial Of Dividend Genius? 7 Day FREE Trial of Dividend Genius ~ Smart Research On High Yield Stocks