SBUX Hikes Quarterly Dividend, Stock Inches Higher

The equity is making its way back toward it's six-month peak

Deputy Editor
Oct 1, 2020 at 10:01 AM
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The shares of Starbucks Corporation (NASDAQ:SBUX) are up 0.9% at $86.70 this morning, after the board of directors approved a 10% hike in its quarterly cash dividend to 45 cents from 41 cents. This dividend payment will be distributed on Nov. 27 of this year, to shareholders of record on Nov. 12, and lifts Starbuck's annual dividend rate to $1.80 per share. 

SBUX has been trying to claw its way back toward its mid-September, six-month peak just below the $90 mark, following a steep drop later in the month. The equity has made a solid effort, and just reclaimed its 20-day moving average, where it is once again testing support. The stock has also been simmering just below its year-to-date breakeven, though it sports a six-month lead of 37%. 

Analysts are split on SBUX, with 10 calling it a "buy" or better, and 12 saying "hold." Plus, the 12-month consensus price target of $84.48 is a 2.6% discount to last night's close. 

The options pits are slightly more bullish. This is per SBUX's 50-day call/put volume ratio of 2.86 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 76% of all readings from the past 12 months. This suggests long calls are more popular than usual. 


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