On Wednesday, October 1st, Starbucks Corporation (SBUX) announced that its Board of Directors approved a quarterly dividend increase from $0.61 to $0.62 per share. The dividend is payable on November 28, 2025, to shareholders of record as of November 14, 2025. This represents a 1.64% increase over the last quarterly dividend.
“We remain committed to returning cash to our shareholders while balancing our investments in our long-term growth strategy,” said Cathy Smith, chief financial officer. “We continue to be pleased with the progress we are making in our Back to Starbucks initiatives and remain confident that the strategic actions we’re taking will drive sustainable long-term growth and healthier profitability.”
At the current price of $84.40 (yesterday's close), this increase will raise SBUX's dividend yield to 2.94%.
Starbucks Corporation is a Dividend Contenders with a 15 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 7.4, 8.0, 9.3 and 15.5 (Dividend Champions.xls)
.png)
As an owner of 50 shares of SBUX, the recent dividend increase adds $1.49 to my projected annual net dividend income.
I had anticipated an increase of around 5%, so while this announcement was somewhat disappointing, it wasn’t entirely unexpected—and, of course, it’s still far preferable to a dividend cut.
This marks the sixth dividend increase I’ve received from Starbucks since initiating my position in May 2020. Over that period, the company’s quarterly dividend has grown consistently from $0.41 to $0.62 per share, reflecting a cumulative increase of 51.2%.
As of this writing, SBUX represents approximately 0.49% of my portfolio by weight and contributes around 0.34% to my projected annual dividend income.
Following this increase, my yield on cost is 3.31%.
Summary of 2025 Dividend Increases / Cuts
Click here to see my portfolio holdings.
You can follow the development of my dividends here.
Full Disclosure: Long SBUX
Thanks for stopping by!
No comments:
Post a Comment