Starbucks Corporation (NASDAQ:SBUX) to Issue Quarterly Dividend of $0.62

Key Points

• Starbucks declared a quarterly dividend of $0.62 per share, payable May 29 to shareholders of record May 15, which annualizes to $2.48 and implies a ~2.5% yield.
• The dividend is currently covered but relatively high: Starbucks' payout ratio is about 82.9%, the company has increased dividends for 15 consecutive years, and analysts' expected EPS next year would lower the implied payout ratio to ~67.8% if realized.
• Analyst sentiment is generally favorable (consensus "Moderate Buy" with a $104.57 target), although Starbucks recently missed quarterly EPS estimates ($0.56 vs. $0.59) and set FY26 guidance of $2.15–$2.40 per share.

Starbucks Corporation (NASDAQ:SBUX - Get Free Report) declared a quarterly dividend on Wednesday, April 15th. Shareholders of record on Friday, May 15th will be given a dividend of 0.62 per share by the coffee company on Friday, May 29th. This represents a c) annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, May 15th.

Starbucks has increased its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 15 years. Starbucks has a dividend payout ratio of 82.9% meaning 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 $3.66 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 67.8%.

Starbucks Stock Down 0.1%

NASDAQ:SBUX opened at $98.34 on Thursday. The firm has a market capitalization of $112.04 billion, a price-to-earnings ratio of 81.27, a price-to-earnings-growth ratio of 2.19 and a beta of 0.95. Starbucks has a twelve month low of $75.50 and a twelve month high of $104.82. The stock's 50 day moving average price is $95.80 and its two-hundred day moving average price is $89.70.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The coffee company reported $0.56 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.03). The company had revenue of $9.92 billion for the quarter, compared to analyst estimates of $9.62 billion. Starbucks had a negative return on equity of 28.66% and a net margin of 3.63%.The firm's revenue for the quarter was up 5.5% compared to the same quarter last year. During the same period last year, the firm earned $0.69 EPS. Starbucks has set its FY 2026 guidance at 2.150-2.400 EPS. As a group, analysts anticipate that Starbucks will post 2.99 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Evercore reaffirmed an "outperform" rating on shares of Starbucks in a research report on Wednesday, January 28th. Zacks Research raised Starbucks from a "strong sell" rating to a "hold" rating in a research report on Tuesday, January 27th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $113.00 price target on shares of Starbucks in a research report on Thursday, January 29th. Jefferies Financial Group raised Starbucks from an "underperform" rating to a "hold" rating and boosted their price target for the stock from $86.00 to $92.00 in a research report on Monday. Finally, Mizuho lifted their target price on Starbucks from $86.00 to $95.00 and gave the stock a "neutral" rating in a research note on Monday, January 26th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $104.57.

Starbucks Company Profile

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks' core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.

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