How To Earn $500 From Starbucks Stock Amid Rumored Strike

With pride flags set to remain furled in Starbucks Corp SBUX stores across the U.S., baristas are brewing more than just coffee.

What Happened: News of an imminent strike is percolating throughout the Seattle-based company, due to a fallout over Pride month decorations. Read more on the strike here.

While Pride month is typically a time of celebration for the LGBTQ+ community, it is anticipated to take a bitter turn for the coffee giant. The workers’ union, Starbucks Workers United, alleges that stores in at least 22 states have denied baristas the right to decorate — a claim that the company denies.

The rumored strike involves over 150 stores, with approximately 3,500 workers.

However, amid the controversy and share decline, investors may be buying the dip on Starbucks to get the capital appreciation, but the coffee giant is also a reliable dividend payer for those who want to long the stock.

See Also: How To Earn $500 A Month From Intel Stock

Starbucks' dividend yield is currently 2.16%. So, how much would an investor need to earn $500 per month from the stock?

We'll start with the $500 per month target, which translates to an annual target of $6,000 ($500 x 12 months).

Next, we'll divide the $6,000 by Starbucks' 2.16% dividend yield: $6,000 / 0.0219 = $277,777.77. That's a lot of coffee.

So, an investor looking to froth their income by $500 a month from Starbucks dividends would need $277,777.77, or 2,821 shares.

For a more modest $100 per month ($1,200 annually), an investor would need $55,555, or 564 shares.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its price is $50, its dividend yield would be 4%. If the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

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