Zinger Key Points
- A more conservative goal of $100 monthly dividend income would require 492 shares of Starbucks.
- An investor would need to own $245,949 worth of Starbucks to generate a monthly dividend income of $500.
- Get Wall Street's Hottest Chart Every Morning
Analysts expect the Seattle, Washington-based company to report quarterly earnings at 67 cents per share, down from 90 cents per share in the year-ago period. Starbucks projects quarterly revenue of $9.31 billion, compared to $9.43 billion a year earlier, according to data from Benzinga Pro.
The company missed analyst estimates for revenue in four straight quarters and missed estimates in six of the past 10 quarters.
With the recent buzz around Starbucks, some investors may be eyeing potential gains from the company's dividends too. As of now, Starbucks offers an annual dividend yield of 2.44%, which is a quarterly dividend amount of 61 cents per share ($2.44 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $245,949 or around 2,459 shares. For a more modest $100 per month or $1,200 per year, you would need $49,210 or around 492 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.44 in this case). So, $6,000 / $2.44 = 2,459 ($500 per month), and $1,200 / $2.44 = 492 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
SBUX Price Action: Shares of Starbucks gained 1.2% to close at $100.02 on Monday.
Read More:
Photo: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
