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Many companies paid dividends in 20YY and these payouts were attributed to the large cash build-up...

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Finance

Many companies paid dividends in 20YY and these payouts wereattributed to the large cash build-up relative to the market valuesof many firms. Starbucks was an example of this phenomenon. Aftertwo years of poor performance and store closings, in the firstquarter of 20YY, Starbucks announced its first dividend payout.They announced not only a 10 cent dividend per share but alsoannounced they would begin to buy back their own shares. Mostanalysts believe Starbucks has passed the fast-growth stage and areentering a maturity period. What is Starbucks share repurchase andenhanced dividend saying about its future prospects?

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4.4 Ratings (842 Votes)
Starbucks share repurchase and enhanced dividend indicates that the company wants to presently reward its shareholders and give them back as much as possible The company expects the future to be promising and its recent deal with Nestle    See Answer
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Many companies paid dividends in 20YY and these payouts wereattributed to the large cash build-up relative to the market valuesof many firms. Starbucks was an example of this phenomenon. Aftertwo years of poor performance and store closings, in the firstquarter of 20YY, Starbucks announced its first dividend payout.They announced not only a 10 cent dividend per share but alsoannounced they would begin to buy back their own shares. Mostanalysts believe Starbucks has passed the fast-growth stage and areentering a maturity period. What is Starbucks share repurchase andenhanced dividend saying about its future prospects?

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