Franchising

Starbucks raises dividends

October 1, 2020

Starbucks investors received good news Wednesday when the chain's board of directors approved a 10% increase in its quarterly cash dividend. Shareholders will receive the payout, which is now 45 cents per share, up from 41 cents, on Nov. 27. The increase raises the company's annual dividend rate to $1.80 per share.

"The board's decision to raise our quarterly dividend demonstrates confidence in the strength of our recovery and the robustness of our long-term growth model," President and CEO Kevin Johnson said in a company press release. "Our cash flow generation is strong, and we remain committed to reducing our financial leverage while continuing to invest for future growth."

Starbucks, which has over 32,000 stores around the globe, initiated its dividend in 2010 and has increased it in each of the past 10 years.