Starbucks (SBUX) Now Giving Investors A Dividend With Their Latte

Starbucks Corp. (NYSE: SBUX) announced on Wednesday that it will pay out its first ever dividend to investors at 10 cents per share, a sign that the company has started to see the benefits of its financial turnaround effort.

In addition, the Seattle-based coffee giant said that its board of directors has approved a buyback program of 15 million shares, which will be added to the 6.3 million shares that the company still has remaining to buy from its previous program.

Starbucks fell on harsh times during the onset of the economic recession. Consumers were paring back on expenses, and the company’s pricey coffees were being left behind for more affordable options, causing the closing of hundreds of stores and cutting of thousands of employees in cost cutting efforts.

The company brought to the forefront some cheaper option in an attempt to remake its image to a consumer that is tightening the purse strings.

"We are confident in the overall financial strength of our business and the strong cash flow it continues to generate," Starbucks Chief Financial Officer Troy Alstead stated.

The efforts by the company have paid off as 2009 profit jumped 2009 and its share price has more than doubled.

The dividend announced will be first paid in cash to investors on April 23 to shareholders that own stock as of April 7. Future dividends will require approval from the company's board and will range from 35 percent to 40 percent of its net income.

Shares of Starbucks are up 11 cents in midday market movement on Wednesday to $25.52.

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