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

By Mill Chart

Last update: Apr 3, 2024

STARBUCKS CORP (NASDAQ:SBUX) was identified as a stock worth exploring by dividend investors by our stock screener. NASDAQ:SBUX scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Assessing Dividend Metrics for NASDAQ:SBUX

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:SBUX has been assigned a 7 for dividend:

  • SBUX's Dividend Yield is rather good when compared to the industry average which is at 2.43. SBUX pays more dividend than 84.33% 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.

Health Insights: NASDAQ:SBUX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:SBUX has earned a 5 out of 10:

  • SBUX has an Altman-Z score of 3.01. This indicates that SBUX is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.01, SBUX is doing good in the industry, outperforming 79.85% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 3.42, SBUX belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.

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:

  • SBUX's Return On Assets of 14.71% is amongst the best of the industry. SBUX outperforms 91.04% of its industry peers.
  • SBUX's Return On Invested Capital of 22.00% is amongst the best of the industry. SBUX outperforms 92.54% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SBUX is significantly above the industry average of 10.29%.
  • The 3 year average ROIC (18.26%) for SBUX is below the current ROIC(22.00%), indicating increased profibility in the last year.
  • SBUX has a better Profit Margin (11.70%) than 77.61% of its industry peers.
  • SBUX's Operating Margin of 15.69% is fine compared to the rest of the industry. SBUX outperforms 67.16% 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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STARBUCKS CORP

NASDAQ:SBUX (4/19/2024, 7:15:12 PM)

After market: 87.53 -0.08 (-0.09%)

87.61

+0.46 (+0.53%)

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