Here's How Many Shares of Starbucks Stock You Should Own to Get $1,000 in Yearly Dividends

If you're looking to collect $1,000 per year in dividend income from Starbucks (NASDAQ: SBUX), do you need a tall, grande, or venti number of shares? The answer is easy to arrive at via some simple math.

The coffee giant, recently sporting a market value of $92.6 billion, was trading at about $81.50 per share as of April 18, 2025. It was also paying $0.61 per share quarterly in dividends, or $2.44 per share each year. For the number of shares needed to collect $1,000, divide that $1,000 by the $2.44 you'd receive per share per year, and you'll get the answer: 410.

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You'll need to buy 410 shares if you want $1,000 in annual dividend income. At $81.50 per share, that will cost you $33,415.

Here are some more things to know:

• Divide the annual dividend amount by the current stock price -- $2.44 divided by $81.50 -- and you'll get the stock's dividend yield: 0.03, or 3%.
• Healthy and growing dividend-paying companies tend to increase their payouts -- often annually. Starbucks' current quarterly payout of $0.61 per share is the result of a 7% bump last year, from $0.57 per share.
• Five years ago, the quarterly dividend was $0.41 per share, so it has grown at an average annual rate of 8% over that period.
• If it grows at 7% per year for the next 10 years, it will be a quarterly payout of $1.20 per share, or $4.80 per year -- and your 410 shares would be generating nearly $2,000 in annual income. (Dividend growth is a beautiful thing.)

So -- should you buy Starbucks? Well, it's not the most undervalued stock around. Its recent forward-looking price-to-earnings (P/E) ratio of 28 is near its five-year average, suggesting that it's somewhat reasonably priced. The company's new-as-of-2024 CEO Brian Niccol is working on a turnaround plan, and there are encouraging signs. Niccol has been working on reducing customer wait times, among other things.

Selena Maranjian has positions in Starbucks. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.