Analyzing NASDAQ:SBUX's Dividend Potential.

Take a closer look at STARBUCKS CORP (NASDAQ:SBUX), a stock of interest to dividend investors uncovered by our stock screener. NASDAQ:SBUX excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Understanding NASDAQ:SBUX's Dividend

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 3.98. SBUX pays more dividend than 84.67% of the companies in the same industry.
• On average, the dividend of SBUX grows each year by 10.79%, which is quite nice.
• 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:

• SBUX has an Altman-Z score of 3.18. This indicates that SBUX is financially healthy and has little risk of bankruptcy at the moment.
• SBUX has a better Altman-Z score (3.18) than 82.48% of its industry peers.
• SBUX has a Debt to FCF ratio of 4.19. This is amongst the best in the industry. SBUX outperforms 81.75% of its industry peers.

Profitability Examination for NASDAQ:SBUX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:SBUX, the assigned 6 is a significant indicator of 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.
• The Return On Invested Capital of SBUX (21.12%) is better than 93.43% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for SBUX is significantly above the industry average of 10.04%.
• The 3 year average ROIC (18.26%) for SBUX is below the current ROIC(21.12%), indicating increased profibility in the last year.
• The Profit Margin of SBUX (11.46%) is better than 78.10% of its industry peers.
• SBUX has a Operating Margin of 15.36%. This is in the better half of the industry: SBUX outperforms 67.88% 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.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.