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Why the dividend investor may take a look at NASDAQ:SBUX.

By Mill Chart

Last update: Nov 27, 2023

STARBUCKS CORP (NASDAQ:SBUX) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NASDAQ:SBUX demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

A Closer Look at Dividend for NASDAQ:SBUX

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:SBUX was assigned a score of 7 for dividend:

  • SBUX's Dividend Yield is rather good when compared to the industry average which is at 3.00. SBUX pays more dividend than 83.21% of the companies in the same industry.
  • The dividend of SBUX is nicely growing with an annual growth rate of 10.79%!
  • SBUX has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SBUX has not decreased their dividend for at least 10 years, which is a reliable track record.
  • The dividend of SBUX is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Analysis for NASDAQ:SBUX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:SBUX scores a 5 out of 10:

  • An Altman-Z score of 3.30 indicates that SBUX is not in any danger for bankruptcy at the moment.
  • SBUX has a better Altman-Z score (3.30) than 81.02% of its industry peers.
  • SBUX has a better Debt to FCF ratio (4.19) than 79.56% of its industry peers.

Profitability Assessment of 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:

  • With an excellent Return On Assets value of 14.01%, SBUX belongs to the best of the industry, outperforming 90.51% of the companies in the same industry.
  • SBUX has a better Return On Invested Capital (21.12%) than 93.43% of its industry peers.
  • SBUX had an Average Return On Invested Capital over the past 3 years of 18.26%. This is significantly above the industry average of 10.03%.
  • The last Return On Invested Capital (21.12%) for SBUX is above the 3 year average (18.26%), which is a sign of increasing profitability.
  • With a decent Profit Margin value of 11.46%, SBUX is doing good in the industry, outperforming 78.83% of the companies in the same industry.
  • SBUX has a Operating Margin of 15.36%. This is in the better half of the industry: SBUX outperforms 69.34% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Disclaimer

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.

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STARBUCKS CORP

NASDAQ:SBUX (2/22/2024, 7:08:51 PM)

After market: 95.78 0 (0%)

95.78

+0.76 (+0.8%)

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