SBUX Stock Dividend Overview and Analysis

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Starbucks Corporation, also known as SBUX, has a long history of paying dividends to its shareholders. The company's first dividend payment was made in 2010.

SBUX has consistently increased its dividend payout over the years, with a 50% increase in dividend payment in 2017. This growth is a testament to the company's financial stability and commitment to returning value to its shareholders.

In 2020, SBUX paid a quarterly dividend of $0.35 per share, resulting in an annual dividend payment of $1.40 per share.

Dividend Details

Starbucks has been paying dividends since 2010. The company's dividend yield is 2.44%, which is lower than the Consumer Cyclical sector average. SBUX's payout ratio is 69.9%, which is above the Consumer Cyclical sector average but below its peers average.

The current dividend yield of Starbucks is 2.44%. This means that for every $100 invested in the company's stock, investors would receive $2.44 in dividends per year. Starbucks's dividend yield has averaged at 2.1% in the last 5 years, which is less than the current one.

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The next dividend payment is planned on February 28, 2025. The ex-dividend date is February 14, 2025, which means that buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment. SBUX has issued more total dividends (as measured in absolute US dollars) over the past six years than 93.04% of other US stocks currently paying dividends.

The annual dividend is $2.44 per share. This is the total amount of dividends paid out to shareholders in a year. Starbucks pays dividends on a quarterly basis.

Here is a list of the last 15 dividend payments:

Safety and Stability

Starbucks Corporation has a long history of paying dividends and has consistently increased its dividend payout for 14 consecutive years.

A low payout ratio is a good indicator of a company's ability to pay dividends, but unfortunately, Starbucks Corporation's payout ratio is about 68.73%.

Starbucks Corporation's dividend safety is a crucial factor to consider when evaluating the safety and stability of its dividend payments.

For more insights, see: Safety Stock

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Here are some key indicators of Starbucks Corporation's dividend safety:

While Starbucks Corporation's dividend payout ratio is a bit higher than ideal, its long history of paying dividends and consistently increasing its dividend payout is a strong indicator of its dividend safety.

Safety

Safety is crucial when it comes to investing in a company. A company with a high level of dividend safety is generally considered to have a strong financial position.

This is because it has a consistent history of paying dividends. Starbucks Corporation (SBUX) has a long history of paying dividends and has consistently increased its dividend payout for 14 consecutive years.

A low payout ratio is another indicator of dividend safety. This means the company has enough earnings to pay dividends and retain earnings to reinvest in the business. Starbucks Corporation's payout ratio is about 68.73%, which is higher than the typical threshold of 60%.

It's worth noting that dividend safety can change over time. A company that was considered safe in the past may no longer be considered safe today. This is why it's essential to regularly monitor a company's financial performance and dividend payment history.

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Payments Stability and Growth

Close-Up Shot of a Starbucks Cup
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Starbucks Corporation has a stable dividend payment history, with a consistent increase in dividend payout for 14 consecutive years. This indicates a strong financial position and a low risk of default.

The company's dividend payout ratio is about 68.73%, which is slightly above the typical threshold of 60%. However, it's essential to note that a slightly higher payout ratio doesn't necessarily mean the company is at risk.

Here's a breakdown of Starbucks Corporation's dividend stability and growth over the past 10 years:

The company has been paying dividends since 2010, with four dividend payments made in the last 12 months. This demonstrates a commitment to returning value to shareholders.

Vs. Peers

Starbucks's dividend yield of 2.44% is lower than some of its peers in the Consumer Cyclical sector.

Wendy's Co has a significantly higher dividend yield of 6.85%, while Cracker Barrel Old Country Store Inc has a yield of 3.75%. Pepsico Inc and Darden Restaurants Inc also have higher yields at 3.6% and 3.03% respectively.

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The table below shows a comparison of Starbucks's dividend metrics with those of its peers.

It's worth noting that Mcdonalds Corp has a similar dividend yield to Starbucks, at 2.41%.

Key Dates and Information

Starbucks Corporation's (SBUX) dividend yield is a respectable 2.56%, which means investors would receive $2.56 in dividends per year for every $100 invested in the company's stock.

The ex-dividend date for SBUX is February 14, 2025, so buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment, which is planned for February 28, 2025.

SBUX pays dividends on a quarterly basis, providing a regular income stream for shareholders.

Here are the key dates and information you need to know about SBUX's dividend:

  • SBUX last dividend date: November 15, 2024
  • SBUX's last dividend ex-date was on November 15, 2024
  • The dividend amount was $0.61 per share

It's worth noting that SBUX has increased its dividends for 14 consecutive years, which is a positive sign of the company's financial stability and its ability to pay consistent dividends in the future.

Financial Performance

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Starbucks Corporation's dividend payments per share have been impressive, averaging 7.41% over the past 12 months.

The company's dividend history and growth are influenced by various factors, including profitability, cash flow, and financial stability.

Market and Valuation

SBUX's dividend yield is 2.6%, which is higher than the bottom 25% of dividend payers in the US market at 1.4%.

In comparison, the top 25% of dividend payers in the US market have a dividend yield of 4.5%, making SBUX's yield relatively low in this category.

Here's a comparison of SBUX's dividend yield with its industry average and analyst forecast:

SBUX Price Forecast

Starbucks Corp's price forecast based on the Dividend Discount Model (DDM) implies a negative return of 43.85% relative to its current price.

A low discount rate is associated with lower risk, and SBUX's discount rate is lower than that of 77.25% of dividend stocks in the same large-sized revenue class.

SBUX's annual revenue of roughly $30 billion US dollars classifies the stock in the large-sized revenue class, where the growth rate of its dividend is greater than that of 82.27% of other dividend issuers.

Approximately 19.71% of US-listed dividend issuers had a higher beta, indicating greater price volatility, than SBUX.

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Market

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The market can be a tricky place to navigate, especially when it comes to dividend yields. The top 25% of dividend payers in the US market have a dividend yield of 4.5%.

The bottom 25% of dividend payers in the US market, on the other hand, have a much lower dividend yield of 1.4%. This highlights the wide range of dividend yields within the market.

Here are some key statistics to keep in mind:

It's worth noting that the industry average for dividend yield in the hospitality sector is 2.0%.

Valuation

Stock prices tend to fluctuate between high and low valuation levels, and these relationships can be used to determine a stock's value range.

The relative dividend yield is an important valuation metric used in the Dividend Grader, and it can be used to calculate a valuation estimate.

A high valuation level can indicate that a stock is overvalued, while a low valuation level can indicate that it's undervalued.

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Starbucks Corporation's Dividend Yield can be used to calculate a valuation estimate, indicating if this stock is expensive relative to its historical norm.

The Dividend Valuation Score is the percentile rank of the average of the percentile ranks of the relative dividend yield and shareholder yield, and it's not variable, meaning it must consider both relative dividend yield and shareholder yield to be valid.

A Dividend Valuation Score of 25 translates into a Dividend Valuation Grade of B and is considered Value.

Frequently Asked Questions

Is Starbucks stock going to split?

Yes, Starbucks stock is going to split, as announced by the company's chairman and CEO Howard Schultz. This will be the sixth stock split in Starbucks' 23-year history as a public company.

Ann Lueilwitz

Senior Assigning Editor

Ann Lueilwitz is a seasoned Assigning Editor with a proven track record of delivering high-quality content to various publications. With a keen eye for detail and a passion for storytelling, Ann has honed her skills in assigning and editing articles that captivate and inform readers. Ann's expertise spans a range of categories, including Financial Market Analysis, where she has developed a deep understanding of global economic trends and their impact on markets.

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