Starbucks raises dividend by 10%

/ / News

Starbucks Corp. said Wednesday that its board has approved a 10% dividend increase to 45 cents a share. The dividend will be paid on Nov. 27 to shareholders of record on Nov. 12. The increase boosts the company’s annual dividend rate to $1.80 a share. “The board’s decision to raise our quarterly dividend demonstrates confidence in the strength of our recovery and the robustness of our long-term growth model,” Chief Executive Kevin Johnson said in a statement. “Our cash flow generation is strong, and we remain committed to reducing our financial leverage while continuing to invest for future growth.” Starbucks started paying dividend in 2010 and has increased it for the past decade. Shares of Starbucks fell 0.2% in the extended session after ending the regular trading day up 1.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.