Starbucks (NASDAQ: SBUX) raised its quarterly dividend to $0.63 per share on October 7, 2026, extending its growth streak to sixteen consecutive years. The increase is modest, but it signals the board’s continued confidence in the turnaround plan at a moment when the stock is under pressure.
What happened
The Starbucks board approved an increase in the quarterly cash dividend from $0.62 to $0.63 per share. The new dividend is payable on November 27, 2026, to shareholders of record on November 13, 2026. That works out to $2.52 per share on an annualized basis.
“Today’s dividend increase reflects our continued confidence and belief that disciplined execution of our Back to Starbucks strategy will drive sustainable long-term growth and value creation,” said Cathy Smith, chief financial officer of Starbucks.
Key numbers for dividend investors
| Metric | Value |
|---|---|
| Quarterly dividend | $0.63 per share, up from $0.62 |
| Annualized dividend | $2.52 per share |
| Increase size | 1.6 percent |
| Payable date | November 27, 2026 |
| Record date | November 13, 2026 |
| Recent close | $93.58 on October 7, 2026 |
| Indicated yield | About 2.7 percent |
| Market capitalization | Roughly $107 billion |
| Consecutive annual increases | 16 |
What that means per $100,000 invested
At the October 7 closing price of $93.58, a $100,000 position buys about 1,069 shares. Those shares would generate roughly $2,694 in annual dividend income at the new $2.52 rate. The same position earned about $2,655 at the old rate, so the raise adds close to $39 per year at that allocation.
| Stock | Recent price | Annual dividend | Shares per $100K | Income per $100K |
|---|---|---|---|---|
| Starbucks (SBUX) | $93.58 | $2.52 | 1,069 | About $2,694 |
| Pfizer (PFE) | ~$28 | $1.72 | 3,571 | About $6,143 |
| Accenture (ACN) | ~$226 | $6.84 | 442 | About $3,024 |
Why the stock is down anyway
SBUX closed at $93.58 on October 7, down 2.63 percent on the day. The stock has slid from around $106 in mid-July, which pushed the indicated yield up from roughly 2.3 percent to about 2.7 percent. A yield that rises because the price falls is not the same thing as a richer payout.
The dividend also sits above trailing earnings. Recent payout ratios run near 143 percent of earnings and about 69 percent of cash flow, according to MarketBeat data. That math works only while operating cash generation holds up.
Risks to watch
- Turnaround execution: the Back to Starbucks strategy must lift traffic and margins before the payout ratio normalizes.
- Payout ratio: a dividend above earnings depends on steady cash flow.
- Consumer budgets: cafe traffic is discretionary and can soften fast in a slowdown.
Common mistakes income investors make here
- Chasing the yield: the rise from roughly 2.3 percent to about 2.7 percent came from a falling share price, not a bigger payout.
- Ignoring coverage: a dividend above earnings leaves little room for error if cash flow slips.
- Treating streak history as a promise: sixteen raises show intent, not obligation.
Investors who want the income without the turnaround risk can compare SBUX against slower-growing but better-covered consumer payouts. The right choice depends on whether the Back to Starbucks plan is a bet they want to make.
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