News Image

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.

Back

STARBUCKS CORP

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

After market: 77.63 -0.09 (-0.12%)

77.72

+0.18 (+0.23%)

SBUX News

News Image8 hours ago - Starbucks CorporationStarbucks to Participate in the Deutsche Bank Global Consumer Conference in Paris
News Image18 hours ago - InvestorPlaceThe Coffee Stock Showdown: SBUX vs. BROS vs. MCD

Will these best coffee stocks be able to keep the caffeine high enough to continue driving their businesses growth?

News Imagea day ago - The Business JournalsFormer Starbucks CEO Kevin Johnson joins board of AI startup
News Image2 days ago - CNBCAre consumers pulling back on spending? It depends which CEO you ask

Companies like PepsiCo have warned about a weak low-income consumer, while Delta Air Lines and Chipotle have benefited from their high-income customer bases.

News Image4 days ago - The Motley FoolForget Starbucks: Buy Stock in This Growing Coffee Chain With a Fanatical Customer Base Instead

One company is growing unit volumes, while the other's volumes are declining.

News Image4 days ago - InvestorPlaceBankruptcy Blunders: 3 Stocks to Dump Before They Go Bust

Investors would do well to sell these stocks before one or more of them head to zero in the near to mid term.

News Image4 days ago - The Motley FoolAs a Longtime Starbucks Shareholder, Here's What I'm Most Worried About Right Now

Management is diligently fixing problems. But is it fixing the right problems?

News Image4 days ago - The Motley FoolForget Amazon: These Unstoppable Stocks Are Better Buys

The king of e-commerce is still a powerhouse to be sure, but that doesn't necessarily make it your best growth investment option at this time.

News Image4 days ago - The Motley FoolWhy It's Time to Sell Starbucks and Buy Dutch Bros Instead

The giant is stumbling while the upstart is surging.

News Image4 days ago - ChartmillWhich S&P500 stocks are moving on Friday?

Stay updated with the movements of the S&P500 index one hour before the close of the markets on Friday. Discover which stocks are leading as top gainers and losers in today's session.

News Image4 days ago - Market News VideoNoteworthy Friday Option Activity: SBUX, BALL, DLTR
News Image4 days ago - ChartmillFriday's session: top gainers and losers in the S&P500 index

Wondering what's happening in today's session for the S&P500 index? Stay informed with the top movers within the S&P500 index on Friday.

SBUX Links
Follow us for more