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.

Should you invest $1,000 in Starbucks right now?

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