So yesterday, we found out that coffee giant Starbucks (SBUX) was rolling out a new tool that drew on ChatGPT to help customers make a connection between their tastes and the beverages Starbucks offered. But reaction to that move is starting to emerge, and the early word is not particularly complimentary. Phrases like “paternalism” emerged, not to mention “condescending.” But investors, also buoyed by an announced cash dividend, were sufficiently pleased to give Starbucks stock a fractional boost seen in Thursday afternoon’s trading.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
The idea of the ChatGPT bot did have a certain reason to it. Early tests included adding a picture of Elon Musk in his Baphomet suit and asking the bot what drink goes with this outfit. The bot recommended the Iced Mango Dream Energy Drink, as the wearer would not “…sip something subtle…” but rather would “…arrive with it…” instead. Interestingly, a query about what drink to bring to the 2026 Gathering of the Juggalos was greeted with the same recommendation.
But it quickly became clear that, while the app was fun in its way, its ability to solve a problem here was limited because no one could tell what the problem was. One report noted, “If anyone’s struggling to remember a 10-word string of buzzword drink titles, it might be time to redesign the menu.” Further, “If you don’t already know what you want from Starbucks, you’re in a place that vibe coding can’t fix.”
Cash Dividend
But there is little like free money to cover a multitude of sins, and Starbucks recently declared a cash dividend that should likely bridge a few gaps with shareholders. Starbucks announced a quarterly cash dividend of $0.62 per share, payable in cash on May 29, 2026, to everyone holding shares on May 15, 2026.
This actually represents a raise of 23.81% against this time last year, noted a separate report, and puts Starbucks’ yield to around 1.5%. With Starbucks slashing store counts to free up cash to “uplift” other store locations and push for that “third-place” concept, it might not be such a great time to hand out cash to investors. But ignoring those investors for long, without serious share price appreciation, is not exactly a great plan either.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, 12 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 20.66% rally in its share price over the past year, the average SBUX price target of $101.71 per share implies 3.22% upside potential.
