Starbucks (SBUX) DIvidends Date & History

Key Takeaways

• Starbucks pays a quarterly dividend of $0.62 per share, totaling $2.48 annually, for a current yield of approximately 2.40%.
• The company has increased its dividend for 15 consecutive years, with an average annual growth rate of about 8.3% over the past five years.
• The trailing payout ratio stands at 187.88% of earnings, exceeding 100%, though cash flow coverage appears more sustainable at around 67%.
• Next ex-dividend date is August 14, 2026, with payment scheduled for August 28, 2026.
• Compared to peers like McDonald's (MCD), Starbucks offers a lower yield but maintains a strong long-term growth streak.
• The dividend profile suits long-term dividend growth investors seeking consistency over high immediate income.

Dividend Overview

Starbucks Corporation (SBUX) maintains a quarterly dividend policy, distributing $0.62 per share four times a year for an annualized total of $2.48. This results in a forward dividend yield of about 2.40%, positioning the stock as a modest-yield dividend payer rather than a high-yield income vehicle. The company qualifies as a dividend growth stock due to its consistent history of annual increases, appealing primarily to investors focused on long-term compounding rather than maximum current income.

Dividend History and Growth

Starbucks has raised its dividend annually for 15 consecutive years. Recent quarterly payments have increased from $0.57 in mid-2024 to the current $0.62 level. Over the past five years, the annualized dividend growth rate averages approximately 8.27%. The company has avoided cuts throughout economic cycles, reflecting a commitment to returning capital to shareholders through steady, predictable increases aligned with its long-term strategy.

Dividend Sustainability and Payout Ratio

The dividend payout ratio based on trailing twelve months earnings reaches 187.88%, indicating that current dividends exceed reported earnings. However, coverage improves when measured against free cash flow, with payouts representing roughly 67% of cash flow in recent assessments. Starbucks maintains solid overall financial stability, supported by its established brand and global operations, which help sustain dividend growth despite the elevated earnings payout ratio. Investors should monitor future earnings recovery for enhanced coverage.

Dividend Compared to Industry Peers

Within the restaurant and consumer discretionary sector, Starbucks' yield of approximately 2.40% trails McDonald's (MCD) at around 2.78-2.79%. Peers such as Yum Brands (YUM) report even lower yields near 1.96%. Starbucks stands out for its extended dividend growth streak of 15 years, while McDonald's features a lower payout ratio near 60%, offering potentially stronger earnings coverage. Overall, Starbucks delivers an average yield profile with notable consistency compared to sector counterparts.

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Is This Stock Attractive for Dividend Investors?

Starbucks may appeal to dividend growth investors who prioritize a multi-year track record of increases and quarterly reliability over elevated current yields. Long-term investors comfortable with a modest yield around 2.4% could find value in the company’s consistent payout history and brand strength. Those seeking higher immediate income or stronger earnings coverage might prefer peers with lower payout ratios. The stock suits conservative dividend investors focused on sustainability through economic cycles rather than aggressive income generation. Prospective buyers should evaluate overall portfolio fit and current market conditions before considering any position.

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