Thursday, October 1, 2020

Dividend Increase – Starbucks Corporation (SBUX)


Yesterday, September 30 the Board of Directors of Starbucks Corporation announced a quarterly dividend increase of from $ 0.41 to $ 0.45 per share that’s payable November 27, 2020 to holders of record November 12, 2020. This represents a 9.76% increase over last quarterly dividend.


“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,” said Kevin Johnson, Starbucks president and CEO. “Our cash flow generation is strong, and we remain committed to reducing our financial leverage while continuing to invest for future growth,” concluded Johnson.


With current price $ 87.04 (today's open), this raise brings their dividend yield to 2.07%.


PM is a Dividend Contenders with a 10 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and years are 12.9, 20.6 and 22.1 (Dividend Champions.xls)



Since I own 40 shares of SBUX, this will increase my portfolio's projected annual net dividend income by $ 4.77.


This increase raises my YOC to 2.41%.





Summary of 2020 Dividend Increases / Cuts



As you can see, some large dividend cuts will have the effect that full-year growth will be negative. I also believe that there will come more cuts during this year.


Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long SBUX


Thanks for stopping by!


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