Want $1,000 in Dividend Income? Here's How Much You Have to Invest in Starbucks Stock.

Starbucks (NASDAQ: SBUX) has been all over the news after it snagged CEO Brian Niccol to help it get back to healthy growth. It's been struggling to meet demand and generate growth, and it's in urgent need of a makeover.

But whether or not Starbucks stock gains or loses this year, one thing shareholders can hold on to is the dividend. Starbucks is actually a fabulous dividend stock , and you can buy Starbucks stock on the dip, benefit from passive income, and wait for the stock to get back up.

A dividend as strong as its coffee

Starbucks doesn't have a long history as a dividend stock. It began paying a dividend in 2010, but it has increased it at high rates, and it's now grown more than 1,000% since it started.

It has paid and raised it through thick and through thin; Starbucks has been through some serious volatility since the pandemic started, including major sales declines and losses, but the dividend has been rock solid. So while the track record is short, it's impressive. Starbucks' dividend yields 2.5% at the current price, close to double the S&P 500 's average of 1.3%.

Starbucks' annual dividend comes out to $2.28 per share right now, so to make $1,000 in dividend income from Starbucks this year, you'd need to own 439 shares. Your total cost for that amount of Starbucks stock at today's price of $93.20 would be $40,520.

If you have a large portfolio and are looking for a downtrodden stock to take a chance on, Starbucks stock could be a candidate. There are reasons for confidence in its turnaround potential. For most investors, investing that much money in a stock that's been volatile for a while, is on its fourth CEO in the same amount of years, and is down 20% over the past three years may not be the right tactic.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy .