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Is NASDAQ:SBUX suited for dividend investing?

By Mill Chart

Last update: Feb 20, 2024

STARBUCKS CORP (NASDAQ:SBUX) has caught the attention of dividend investors as a stock worth considering. NASDAQ:SBUX excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

A Closer Look at Dividend 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:

  • Compared to an average industry Dividend Yield of 4.16, SBUX pays a better dividend. On top of this SBUX pays more dividend than 84.56% of the companies listed 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
  • SBUX's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Analysis for NASDAQ:SBUX

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:SBUX, the assigned 5 reflects its health status:

  • SBUX has an Altman-Z score of 3.08. This indicates that SBUX is financially healthy and has little risk of bankruptcy at the moment.
  • SBUX has a better Altman-Z score (3.08) than 81.62% of its industry peers.
  • The Debt to FCF ratio of SBUX is 3.42, which is a good value as it means it would take SBUX, 3.42 years of fcf income to pay off all of its debts.
  • SBUX has a Debt to FCF ratio of 3.42. This is amongst the best in the industry. SBUX outperforms 81.62% of its industry peers.

A Closer Look at Profitability for NASDAQ:SBUX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:SBUX scores a 6 out of 10:

  • SBUX has a better Return On Assets (14.71%) than 90.44% of its industry peers.
  • SBUX's Return On Invested Capital of 22.00% is amongst the best of the industry. SBUX outperforms 92.65% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SBUX is significantly above the industry average of 10.64%.
  • The last Return On Invested Capital (22.00%) for SBUX is above the 3 year average (18.26%), which is a sign of increasing profitability.
  • SBUX has a better Profit Margin (11.70%) than 79.41% of its industry peers.
  • SBUX has a better Operating Margin (15.69%) than 66.91% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of SBUX


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 (4/18/2024, 7:19:09 PM)

Premarket: 86.74 -0.41 (-0.47%)


+0.94 (+1.09%)


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