Why NASDAQ:SBUX qualifies as a good dividend investing stock.

Discover STARBUCKS CORP (NASDAQ:SBUX)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NASDAQ:SBUX showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Dividend Analysis for NASDAQ:SBUX

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NASDAQ:SBUX has received a 7 out of 10:

• SBUX's Dividend Yield is rather good when compared to the industry average which is at 3.00. SBUX pays more dividend than 82.35% of the companies in the same industry.
• The dividend of SBUX is nicely growing with an annual growth rate of 10.80%!
• SBUX has paid a dividend for at least 10 years, which is a reliable track record.
• SBUX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• The dividend of SBUX is growing, but earnings are growing more, so the dividend growth is sustainable.

Analyzing Health Metrics

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:SBUX has earned a 5 out of 10:

• An Altman-Z score of 3.29 indicates that SBUX is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 3.29, SBUX belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
• Looking at the Debt to FCF ratio, with a value of 4.19, SBUX belongs to the top of the industry, outperforming 80.15% of the companies in the same industry.

How do we evaluate the Profitability for NASDAQ:SBUX?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:SBUX, the assigned 6 is noteworthy for profitability:

• The Return On Assets of SBUX (14.01%) is better than 91.91% of its industry peers.
• SBUX's Return On Invested Capital of 21.04% is amongst the best of the industry. SBUX outperforms 93.38% of its industry peers.
• SBUX had an Average Return On Invested Capital over the past 3 years of 18.23%. This is significantly above the industry average of 10.74%.
• The 3 year average ROIC (18.23%) for SBUX is below the current ROIC(21.04%), indicating increased profibility in the last year.
• SBUX has a better Profit Margin (11.46%) than 77.94% of its industry peers.
• SBUX has a better Operating Margin (15.30%) than 69.85% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of SBUX for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.