Starbucks Corporation (NASDAQ:SBUX) Raises Dividend to $0.63 Per Share

Key Points

• Starbucks raised its quarterly dividend 1.6% to $0.63 per share, equivalent to $2.52 annually and a 2.7% yield. The dividend is payable November 27 to shareholders of record November 13, with the same date listed as the ex-dividend date.
• Starbucks has increased its dividend for 15 consecutive years, but its 82.9% payout ratio leaves limited room if earnings weaken. Analysts expect $3.15 in earnings per share next year, implying a future payout ratio of about 78.7%.
• The company’s latest quarterly results exceeded expectations, with $0.85 EPS versus the $0.66 consensus and revenue of $9.32 billion, although revenue declined 1.4% year over year. Analysts maintain a consensus “Hold” rating and a $110.48 target price.

Starbucks Corporation (NASDAQ:SBUX - Get Free Report) declared a quarterly dividend on Wednesday, October 7th. Shareholders of record on Friday, November 13th will be given a dividend of $0.63 per share by the coffee company on Friday, November 27th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, November 13th. This is a 1.6% increase from Starbucks's previous quarterly dividend of $0.62.

Starbucks has increased its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 15 consecutive years. Starbucks has a dividend payout ratio of 82.9% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Analysts expect Starbucks to earn $3.15 per share next year, which means the company should continue to be able to cover its $2.48 annual dividend with an expected future payout ratio of 78.7%.

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $93.58 on Thursday. The company has a 50-day moving average price of $101.79 and a 200-day moving average price of $100.98. The stock has a market capitalization of $106.68 billion, a P/E ratio of 53.78, a P/E/G ratio of 1.39 and a beta of 0.98. Starbucks has a 1 year low of $77.99 and a 1 year high of $110.51.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, topping analysts' consensus estimates of $0.66 by $0.19. The company had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The firm's revenue was down 1.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, equities research analysts anticipate that Starbucks will post 2.59 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently commented on SBUX. Weiss Ratings reissued a "hold (c)" rating on shares of Starbucks in a research note on Monday, July 20th. Seaport Research Partners assumed coverage on Starbucks in a research report on Wednesday, September 16th. They set a "neutral" rating on the stock. Zacks Research downgraded Starbucks from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Citigroup increased their price target on Starbucks from $108.00 to $112.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. Finally, Needham & Company LLC set a $120.00 price objective on Starbucks in a research note on Tuesday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $110.48.

Starbucks Company Profile

Starbucks Corporation is a global specialty coffee company that operates coffeehouses and sells coffee, tea and other beverages, along with food products and merchandise. Its menu includes brewed coffee, espresso-based drinks, cold beverages, teas, bakery items and ready-to-eat food. Starbucks also markets packaged coffee, ready-to-drink beverages and related products through retail and grocery channels, often through licensing and other business partnerships.

Founded in Seattle in 1971, Starbucks expanded from a local coffee retailer into an international brand.

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