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Is NASDAQ:SBUX suited for dividend investing?

By Mill Chart

Last update: Jan 9, 2024

Consider STARBUCKS CORP (NASDAQ:SBUX) as a top pick for dividend investors, identified by our stock screening tool. NASDAQ:SBUX shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Insights: 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 3.36. SBUX pays more dividend than 84.56% of the companies in the same industry.
  • The dividend of SBUX is nicely growing with an annual growth rate of 10.79%!
  • SBUX has paid a dividend for at least 10 years, which is a reliable track record.
  • SBUX has not decreased their dividend for at least 10 years, which is a reliable track record.
  • SBUX's earnings are growing more than its dividend. This makes the dividend growth sustainable.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:SBUX was assigned a score of 5 for health:

  • SBUX has an Altman-Z score of 3.13. This indicates that SBUX is financially healthy and has little risk of bankruptcy at the moment.
  • SBUX has a better Altman-Z score (3.13) than 81.62% of its industry peers.
  • SBUX's Debt to FCF ratio of 4.19 is amongst the best of the industry. SBUX outperforms 81.62% of its industry peers.

Evaluating Profitability: NASDAQ:SBUX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:SBUX has achieved a 6:

  • SBUX has a Return On Assets of 14.01%. This is amongst the best in the industry. SBUX outperforms 90.44% of its industry peers.
  • With an excellent Return On Invested Capital value of 21.12%, SBUX belongs to the best of the industry, outperforming 93.38% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SBUX is significantly above the industry average of 10.05%.
  • 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.
  • Looking at the Profit Margin, with a value of 11.46%, SBUX is in the better half of the industry, outperforming 78.68% of the companies in the same industry.
  • SBUX has a better Operating Margin (15.36%) than 67.65% 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 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.



NASDAQ:SBUX (5/21/2024, 7:00:02 PM)

After market: 77.63 -0.09 (-0.12%)


+0.18 (+0.23%)


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