Starbucks dividend

Starbucks pays a latest quarterly dividend of $0.63, annualized at $2.52. In FY2025, Starbucks paid $2,771.4 million in dividends against calculated free cash flow of $2,442.0 million.

How much does Starbucks pay in dividends?

The dividend is a stabilizer, not the investment case. The latest quarterly rate is $0.63, annualized at $2.52. The base case moves from $2.52 to $2.60 and then $2.68; the bear case holds at $2.52; the bull case reaches $2.96. The pause is credible because FY2025 dividends exceeded calculated free cash flow, although the latest increase and long record make a cut less likely.

Is Starbucks’ dividend covered by its cash?

Free cash flow is operating cash flow less spending on property and equipment. In fiscal 2025, Starbucks generated $4,747.5 million of operating cash and spent $2,305.5 million on property and equipment. Calculated free cash flow was therefore $2,442.0 million.

Starbucks paid $2,771.4 million in dividends in 2025, more than calculated free cash flow. That does not prove the dividend is unsafe, but it makes maintenance spending, future cash generation and the balance sheet central questions.

What could change Starbucks’ dividend?

The forecast moves toward the bear case if FY2027 and FY2028 results show stalled transactions, worsening waits or accuracy, rising labor cost per transaction, and weaker operating margins. Persistent closure and turnaround spending would further reduce cash available for buybacks.

What is Starbucks’ dividend yield at its share price?

At today’s price, Starbucks is valued for a recovery in lasting profits, not for a generous cash yield.