Starbucks Corporation

SBUX
Consumer Cyclical
$103.11
2.40%Fair Value

Starbucks Corporation (SBUX) is a Consumer Cyclical company that currently yields 2.40% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $88.21 and the overvaluation threshold at $138.53. Starbucks Corporation holds a quality score of 50/100 (Average), reflecting 14 consecutive years of dividend growth with a 188% payout ratio. The 5-year dividend CAGR stands at 7.8%.

SBUX Dividend Yield History — Weiss Valuation

Underval. $88.21Overval. $138.53

Distance to undervalued

Waiting for a better entry

Needs about 14.5% downside to reach the Weiss buy zone

Undervaluation starts near $88.21, where the annual dividend would imply roughly 2.80% yield. That is 0.40% above today's yield.

Buy-zone price

$88.21

Target yield

2.80%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

188%

Coverage deserves a closer look in filings.

Cash payout

N/A

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

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

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

Current yield 2.4% vs historical max 2.7% (90% of maximum).

14 consecutive years without a dividend cut.

Elevated payout ratio of 188%.

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

$258

Year 10 Income

$695

Yield on Cost

7.3%

Total Income

$4,384

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

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

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$103.11
Annual Dividend$2.47
Current Yield2.40%
Yield — Max (10Y)2.67%
Yield — Min (10Y)1.51%
Undervalued Below$88.21
Overvalued Above$138.53
Payout Ratio187.79%
CAGR Dividend 5Y7.8%
CAGR Dividend 10Y13.7%
Years No Cut14y

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14
consecutive years of dividend growth