Starbucks Corporation

SBUX
Consumer Cyclical
$95.25
2.60%Fair Value

Starbucks Corporation (SBUX) is a Consumer Cyclical company that currently yields 2.60% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $88.56 and the overvaluation threshold at $137.02. Starbucks Corporation holds a quality score of 50/100 (Average), reflecting 14 consecutive years of dividend growth with a 143% payout ratio. The 5-year dividend CAGR stands at 7.8%.

SBUX Dividend Yield History — Weiss Valuation

Underval. $88.56Overval. $137.02

Distance to undervalued

Waiting for a better entry

Needs about 7.0% downside to reach the Weiss buy zone

Undervaluation starts near $88.56, where the annual dividend would imply roughly 2.80% yield. That is 0.20% above today's yield.

Buy-zone price

$88.56

Target yield

2.80%

Research checklist

What to clear before buying the yield

Updated Oct 7, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

143%

Coverage deserves a closer look in filings.

Cash payout

92%

Confirm cash conversion and one-off effects.

Dividend growth

7.8%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-10-06 → 2026-10-07

Price

+1.1%

$94.24 → $95.25

Price rose 1.1% since the prior snapshot.

Why Now?

Starbucks Corporation is trading at a fair valuation relative to its dividend history.

Current yield 2.6% vs historical max 2.7% (97% of maximum).

14 consecutive years without a dividend cut.

Elevated payout ratio of 143%.

What matters now

Read the signal before the headline yield

Valuation is neutral here: quality has to do more of the work than entry price.

The 50/100 quality score says the headline yield needs extra skepticism.

The earnings payout ratio is above 100%, so coverage is the first risk to unpack.

SBUX Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$281

Year 10 Income

$776

Yield on Cost

8.19%

Total Income

$4,837

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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More research

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SBUX Dividend Quality Score

Quality Score

50/ 100

Average

Payout Ratio0/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History15/15
FCF Coverage0/15

Key Metrics

Current Price$95.25
Annual Dividend$2.48
Current Yield2.60%
Yield — Max (10Y)2.67%
Yield — Min (10Y)1.52%
Undervalued Below$88.56
Overvalued Above$137.02
Payout Ratio142.77%
CAGR Dividend 5Y7.8%
CAGR Dividend 10Y13.7%
Years No Cut14y

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14
consecutive years of dividend growth