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— Warren Buffett

A five-year holding period is a useful test of whether a dividend-paying stock has rewarded patience through both price performance and income generation. For Starbucks Corp. (NASD: SBUX), the results over the past five years show a modest positive total return, driven largely by dividends rather than capital appreciation.

Using a starting investment of $10,000 on 11/09/2021 and assuming all dividends were reinvested, an investment in SBUX would have grown to $10,400.84 as of 11/06/2026. That equates to a total return of 4.01% and an annualized return of 0.79%.

SBUX 5-Year Return Details

SBUX 5-Year Return Details
Start date:	11/09/2021	$10,000 11/09/2021   $10,400 11/06/2026
End date:	11/06/2026
Start price/share:	$114.13
End price/share:	$105.41
Starting shares:	87.62
Ending shares:	98.67
Dividends reinvested/share:	$11.28
Total return:	4.01%
Average annual return:	0.79%
Starting investment:	$10,000.00
Ending investment:	$10,400.84

The result is notable because Starbucks produced a positive total return even though the share price declined over the period. The stock fell from $114.13 to $105.41, but dividend reinvestment increased the share count from 87.62 to 98.67. That incremental share accumulation offset the price decline and lifted the ending value modestly above the original investment.

These numbers were computed with the Dividend Channel DRIP Returns Calculator, assuming reinvestment at the closing price on each dividend ex-date.

What Drove the Return

For this five-year SBUX holding period, income mattered more than valuation expansion. The key drivers were:

• Share price performance was negative over the period.
• Cash dividends added meaningfully to total return.
• Reinvestment increased the investor’s share count by more than 11 shares.
• The final outcome depended on total return, not price return alone.

This distinction is especially important with established consumer companies that return capital through regular dividends. A flat or slightly declining stock price does not necessarily translate into a negative investment outcome if distributions are consistent and reinvested over time.

Dividend Reinvestment and Yield on Cost

Over the period examined, Starbucks paid $11.28 per share in dividends. Reinvestment converted those distributions into additional shares, which in turn generated their own future dividends. That compounding effect was the main reason the investment finished with a gain rather than a loss.

Based upon the most recent annualized dividend rate of $2.52 per share, SBUX has a current yield of approximately 2.39% using the ending share price of $105.41. Measured against the original purchase price of $114.13, the current annualized dividend implies a yield on cost of 2.09%.

Yield on cost can be a useful reference point for long-term holders because it shows how the current income stream compares with the original entry price. It is not a valuation metric, but it does help illustrate how dividend growth and time can improve the income profile of an equity position.

Key Takeaway on Starbucks Stock Performance

A $10,000 investment in Starbucks made in November 2021 would be worth $10,400.84 by November 2026, assuming dividends were reinvested. The five-year total return of 4.01% was positive, but subdued, and the annualized return of 0.79% indicates that most of the value creation came from dividends rather than share price appreciation.

For evaluating Starbucks stock, the period underscores a basic point: total return provides a more complete measure than price change alone. In SBUX’s case, dividend reinvestment was the difference between a negative price-only outcome and a modestly positive five-year result.

Another investment quote worth keeping in mind:
“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” — Warren Buffett