Starbucks hikes dividend by 7.5% to $0.57 quarterly per share

On September 20, 2023, Starbucks Corporation (SBUX) announced that it will raise its quarterly dividend by 7.5% to $0.57 per share. This follows a dividend hike of 8.2 percent to $0.53 per share in 2022 and will mark the 13th consecutive year of annual dividend increases by the specialty coffee company.

This increase will be effective with the dividend payable on November 24, 2023, to shareholders of record on November 10, 2023, and raises the company’s annual dividend rate to $2.28 per share. Starbucks initiated its dividend in 2010 at $0.05 per share of outstanding Common Stock, and increased its dividend consecutively each year over the past 13 years at a CAGR of approximately 20%.

At a stock price of $92.74 the dividend yield for Starbucks is 2.46%. The company now pays an estimated $2.6 billion in dividends to shareholders annually.

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of specialty coffee. The company purchases and roasts high-quality coffees that are sold, along with handcrafted coffee, tea and other beverages and a variety of high-quality food items through company-operated stores. Starbucks also sells a variety of coffee and tea products and licenses its trademarks through other channels such as licensed stores, grocery and foodservice accounts. In addition to its flagship Starbucks Coffee brand, the company sells goods and services under the following brands: Teavana, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks Reserve and Princi. Starbucks Corporation was formed in 1985 and has paid a dividend every year since 2010.