Star Bulk Raises Quarterly Dividend 80.0% to $0.90
Star Bulk raised its quarterly payout to $0.90 after stronger freight rates lifted cash flow, while its variable record keeps income stability in focus.
SBLK — Star Bulk Carriers Corp.
Key takeaways
- The quarterly dividend increased 80.0% to $0.90 from $0.50.
- The forward yield is 6.18%, compared with the Industrials sector median of 1.61%.
- The earnings payout ratio is 40%, while the dividend safety score is 51 and the grade is D.
- The annual dividend is $1.88 per share, equal to $188.00 of annual income for 100 shares.
Star Bulk Carriers Corp. increased its quarterly dividend to $0.90 from $0.50, an 80.0% raise. Shares traded ex-dividend on August 21, 2026, and the payment frequency remains quarterly.
Why the dividend changed
The increase reflects Star Bulk’s formula-based distribution policy and a sharp improvement in its underlying shipping results. The company’s policy allows the board to distribute operating cash flow remaining after debt amortization, maintenance and upgrade spending, and any shortfall in its vessel-level cash reserve. Each dividend still requires quarterly board approval and depends on earnings, charter markets, capital requirements and lending restrictions, according to Star Bulk’s dividend policy.
That formula produced a larger payment after stronger dry-bulk freight rates lifted second-quarter cash generation. Star Bulk reported net income of $144.9 million and operating cash flow of $149.9 million, compared with $0.04 million and $54.5 million, respectively, a year earlier. Its average daily time-charter-equivalent rate increased to $24,486 from $13,624 even as its average fleet became smaller. Voyage revenue rose to $357.4 million from $247.4 million. The company said higher charter rates were the primary driver, while bunker sales also benefited the period’s results. Star Bulk’s results release described the quarter as its most profitable since the second quarter of 2022.
The dividend therefore functions as a variable distribution of cash generated by a cyclical shipping business, rather than a fixed payout designed to rise steadily. Management said the supply-demand balance supporting first-half performance remained intact and described the outlook for the rest of 2026 as constructive. That commentary explains the increase, but the policy leaves subsequent payments exposed to freight rates, fleet spending and debt service.
Dividend track record
The recent record shows substantial payment volatility. The quarterly amount moved from $0.11 with a December 5, 2025 ex-dividend date to $0.37 on March 9, 2026, $0.50 on June 12, 2026 and $0.90 on August 21, 2026. The latest increase extends a recovery from the reduced payments of 2025, but it does not establish a conventional annual growth streak. Star Bulk has 0 consecutive years of dividend growth, and its last annual cut occurred in 2025.
Annual totals reinforce that pattern. Payments reached $6.50 per share in 2022 before falling 75.9% to $1.57 in 2023. The total then rose 59.2% to $2.50 in 2024 and fell 88.0% to $0.30 in 2025. The current annual dividend per share is $1.88. These swings track the economics of a spot-exposed dry-bulk fleet and the company’s practice of returning residual cash rather than smoothing distributions across shipping cycles.
Is the dividend covered?
The dividend consumes 40% of earnings, indicating that reported profit currently exceeds the distribution. That ratio provides an earnings cushion, but it does not remove the cash-flow volatility created by changing charter rates, vessel expenses and capital commitments.
SmarterDividends gives the dividend a safety score of 51 and rates it D, meaning unsafe. The grade reflects the instability visible in the payment history despite the current earnings coverage. For income holders, the distinction is important: the latest payout is covered by recent earnings, but the policy and historical record provide limited assurance that the same rate will persist through weaker shipping conditions.
Yield and valuation
Star Bulk’s forward yield is 6.18%, compared with a 1.61% median for the Industrials sector. The difference compensates investors with more current income, while also reflecting the greater variability of a shipping dividend. At $29.87 per share, the company has a market value of $3.5 billion and has recorded a 72.6% gain over one year.
SmarterDividends estimates fair value at $27.64 and assigns the shares a fair valuation verdict. At the current annual dividend, 100 shares produce $188.00 of annual income.
What to watch
The next quarterly results are the main checkpoint for the payout. Charter rates, operating cash flow, debt service and maintenance or fleet-upgrade spending feed directly into the dividend formula. Investors can also monitor deliveries under Star Bulk’s newbuilding program. At the latest results, the company expected two vessels in the third quarter of 2026 and three in the fourth quarter, while continuing to sell older ships. Those transactions affect capital spending, financing needs and available cash. The interim filing details the fleet and liquidity commitments.
One prospective capital demand has already been removed. Star Bulk and Diana Shipping mutually terminated the agreement under which Star Bulk would have acquired 16 Genco vessels for $470.5 million. The termination followed Star Bulk’s request and ended the related vessel purchase obligation, according to the companies’ announcement filed with the SEC. The focus now returns to freight-market performance, scheduled newbuilding deliveries and the cash remaining after required expenditures.
SBLK dividend data
From the SmarterDividends dataset, updated daily
- Forward yield
- 6.77%
- Payout ratio
- 40%
- Growth streak
- 0 yrs
- Safety grade
- D · 48/100
| Ex-dividend date | Amount | Change |
|---|---|---|
| Aug 21, 2026 | $0.9000 | +80.0% |
| Jun 12, 2026 | $0.5000 | +35.1% |
| Mar 9, 2026 | $0.3700 | +236.4% |
| Dec 5, 2025 | $0.1100 | +120.0% |
| Aug 28, 2025 | $0.0500 | +0.0% |
| Jun 6, 2025 | $0.0500 | -44.4% |
| Mar 4, 2025 | $0.0900 | -85.0% |
| Dec 5, 2024 | $0.6000 | +33.3% |
Frequently asked questions
When was SBLK’s latest ex-dividend date?
The latest ex-dividend date was August 21, 2026. No next ex-dividend date is listed.
How much is Star Bulk’s new quarterly dividend?
Star Bulk’s new quarterly dividend is $0.90 per share, increased 80.0% from $0.50.
Is SBLK’s dividend safe?
SmarterDividends gives the dividend a safety score of 51 and rates it D, meaning unsafe. The earnings payout ratio is 40%, but the payment record is highly variable.
How much is SBLK’s annual dividend?
The annual dividend is $1.88 per share. That equals $188.00 in annual income for 100 shares.
What is Star Bulk’s dividend yield?
The forward yield is 6.18%. The Industrials sector median forward yield is 1.61%.
Sources
See SBLK's full dividend profile
Yield, payout, safety score, history and the next ex-dividend date.
View SBLKEvery dividend increases this month, with the data behind it: Dividend Increases, August 2026.
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