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
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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
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