Starbucks (SBUX) DIvidends Date & History

Key Takeaways

• Starbucks pays a quarterly dividend of $0.62 per share, totaling $2.48 annually for a yield of approximately 2.37%.
• The company has raised its dividend for 15 to 16 consecutive years, supporting its status as a dividend growth stock.
• Payout ratio exceeds 140% of earnings, raising questions about long-term sustainability despite solid free cash flow coverage near 77%.
• Dividend profile appeals more to growth-oriented income investors than high-yield seekers.
• Yield compares favorably to many restaurant industry peers, though elevated payout warrants monitoring.
• Recent ex-dividend date was August 14, 2026, with payment on August 28, 2026.

Dividend Overview

Starbucks Corporation (SBUX) maintains a quarterly dividend policy, distributing $0.62 per share four times per year. The current annual payout stands at $2.48, producing a trailing yield near 2.37% based on recent share prices around $104. This positions SBUX as a modest-yield dividend growth stock rather than a high-yield income vehicle. Payments occur on a consistent quarterly schedule, with the most recent ex-dividend date falling on August 14, 2026, and the corresponding payment issued on August 28, 2026. The policy reflects a balanced approach aimed at returning capital while funding operations and expansion.

Dividend History and Growth

Starbucks has demonstrated steady dividend growth over more than a decade. The annual payout has risen from lower levels in prior years to the current $2.48, with a one-year growth rate of about 1.64%. The firm has increased its dividend for 15 to 16 consecutive years, qualifying it as a dividend aristocrat-style contender within the consumer sector. Quarterly amounts have progressed incrementally, moving from $0.49 in 2021–2022 to $0.53 in 2023, $0.57 in 2024, $0.61 in 2025, and $0.62 in 2026. This pattern underscores a long-term strategy of modest but reliable annual hikes aligned with earnings and cash generation.

Dividend Sustainability and Payout Ratio

Sustainability merits careful review given the payout ratio above 140% of earnings. This level exceeds 100%, indicating dividends currently outpace reported net income. However, free cash flow coverage appears more comfortable at roughly 77%, providing a buffer supported by operational cash generation. Debt levels remain manageable within the consumer discretionary space, and interest coverage ratios stay healthy. While the elevated earnings payout ratio signals potential vulnerability if profits decline sharply, the company’s brand strength and global scale contribute to overall financial stability for ongoing distributions.

Dividend Compared to Industry Peers

Within the restaurants and consumer cyclical sector, SBUX’s 2.37% yield stands above the industry median near 1.97%. Peers often deliver lower or zero yields, making Starbucks relatively attractive for income-focused investors seeking exposure to established consumer brands. The company’s consistent growth streak further differentiates it from many competitors that lack similar dividend histories or payout discipline.

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Is This Stock Attractive for Dividend Investors?

Starbucks may suit dividend growth investors seeking moderate yields combined with a proven track record of annual increases. Conservative income investors could find the quarterly schedule and brand resilience appealing, though the high payout ratio suggests monitoring earnings trends closely. Long-term holders focused on total return rather than maximum current income may view the stock favorably within a diversified portfolio. The combination of yield, growth history, and sector positioning offers a balanced profile, but elevated payout metrics indicate it is not ideal for those prioritizing the highest possible income or lowest risk. Investors should assess personal risk tolerance and portfolio allocation accordingly.

Disclaimer

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