why is SBUX "dividend princes"

Starbucks is often referred to as a "dividend prince" due to its consistent dividend payouts and attractive yield, which reflects the company's commitment to returning value to its shareholders. Here are several reasons why SBUX can be considered a dividend prince:

1. Consistent Dividend Payments: Starbucks has a history of consistently paying dividends, with a dividend continuous duration of 15 years and a dividend growth duration of 14 years. This demonstrates the company's commitment to providing shareholders with regular returns.
2. Attractive Dividend Yield: The dividend yield for Starbucks is 2.92% as of April 16, 2025, which is above the average savings account or government bond yield. This makes SBUX an attractive investment for income-focused investors.

SBUX Payout Ratio, Dividend Yield (TTM)

3. Sustainable Payout Ratio: The company's payout ratio stands at -74.71%, which is negative due to the inclusion of free cash flow data. However, a positive payout ratio, coupled with the free cash flow of $1.38 billion, indicates that Starbucks has the financial capacity to sustain and grow its dividend payments.

SBUX Free Cash Flow, Payout Ratio

4. Dividend Growth: Starbucks has a history of increasing dividends, with an annualized payout of $2.12 per share and a yield of 2.06%. This reflects the company's focus on shareholder returns and its ability to grow dividends over time.
5. Financial Health: The company's financial health, as indicated by its free cash flow and ability to pay dividends, supports the notion of Starbucks as a dividend prince. The company's strong cash flow allows it to sustain and grow its dividend payments without compromising its financial stability.

In conclusion, Starbucks's consistent dividend payments, attractive yield, sustainable payout ratio, history of dividend growth, and strong financial health make it a compelling dividend investment, earning it the nickname "dividend prince."