Starbucks Raises Quarterly Dividend 1.6% to $0.63

Starbucks Corporation raised its quarterly dividend 1.6% to $0.63 a share from $0.62. The next ex-dividend date is November 13, 2026, and the payment date is November 27, 2026, bringing the annual dividend to $2.52 a share.

Why the dividend changed

Starbucks tied the increase to its confidence in the Back to Starbucks turnaround rather than to a split, spin-off or special distribution. Chief Financial Officer Cathy Smith said disciplined execution of the strategy is intended to support sustainable growth and value creation. The board approved the increase on October 7, 2026, according to the company’s dividend announcement.

The decision followed stronger operating trends in Starbucks’ fiscal third quarter. Global comparable-store sales increased 7.9%, led by a 4.2% rise in transactions, while North American comparable sales increased 8.1%. Consolidated revenue fell 1% to $9.3 billion because the China transaction moved those retail operations from company ownership to a licensed joint-venture model. GAAP operating margin expanded to 10.5%, although Starbucks said labor investments and restructuring costs continued to weigh on profitability. Starbucks’ third-quarter results also showed that part of the China proceeds was used to retire about $1.3 billion of debt.

Management raised its fiscal-year outlook at that report. It projected full-year global comparable-store sales growth nearing 6.0%, revenue ranging from flat to slight growth, a non-GAAP operating margin above 11.0% and non-GAAP earnings per share of $2.55 to $2.65. That outlook provides the operating context for the dividend increase, although the size of the raise remains restrained relative to Starbucks’ longer-term record.

The China restructuring is an important complication when comparing periods. Starbucks retained a 40% interest in the joint venture and continues to own and license the brand and intellectual property. The transaction reduced reported revenue but shifted the business toward royalty and product income, making revenue alone a less complete measure of the turnaround.

Dividend track record

The increase extends Starbucks’ established pattern of raising the fourth quarterly payment in each annual cycle. The four payments with ex-dividend dates from November 14, 2025, through August 14, 2026, were each $0.62. The preceding four, from November 15, 2024, through August 15, 2025, were each $0.61. The move to $0.63 continues that stepwise pattern.

Full-year distributions rose from $1.68 a share in 2020 to $1.84 in 2021, $2.00 in 2022, $2.16 in 2023, $2.32 in 2024 and $2.45 in 2025. Annual growth moderated from 9.5% in 2021 to 8.7% in 2022, 8.0% in 2023, 7.4% in 2024 and 5.6% in 2025. The five-year record is 8.3% annual growth, but the latest 1.6% increase marks a substantially slower pace.

Starbucks describes the declaration as its sixteenth consecutive annual increase, one year longer than the completed 15-year growth streak measured before this declaration. No annual dividend cut appears in the payment history provided here.

Is the dividend covered?

The dividend equals 143% of earnings. A payout ratio above reported earnings means accounting profit did not fully cover the distribution over the measured period, making earnings recovery and margin performance relevant to future coverage.

SmarterDividends rates the dividend B with a safety score of 76, classified as safe within the 66-79 range. That grade indicates a generally sound overall dividend profile, while the 143% earnings payout ratio remains the clearest constraint. The small increase also preserves more financial flexibility than Starbucks’ earlier growth rates would have allowed.

Yield and valuation

At a share price of $102.69, the $2.52 annual dividend produces a 2.45% forward yield. That is below the Consumer Cyclical sector median forward yield of 2.54%. An investor holding 100 shares would receive $252.00 in annual dividend income at the new rate, subject to future board declarations.

The shares have recorded a 15.7% one-year gain. SmarterDividends’ fair-value estimate is $53.90, producing an overvalued verdict and 47% downside to fair value. The valuation assessment is separate from dividend safety: the B grade addresses the distribution’s risk profile, while fair value compares the share price with the estimate.

What to watch

Starbucks is scheduled to release fourth-quarter and full fiscal-year 2026 results after the market closes on October 29, 2026, followed by its earnings call, according to the company’s conference-call notice. The report will provide the next update on operating margins, transaction growth and the raised fiscal-year guidance.

Investors can also track progress against the longer-term framework presented at Starbucks’ 2026 investor day. The plan centers on comparable-sales growth, store expansion and operating leverage through fiscal 2028. Nearer term, the November 13, 2026, ex-dividend date and November 27, 2026, payment will be the first cycle at the new $0.63 rate.