Why NASDAQ:SBUX provides a good dividend, while having solid fundamentals.

Last update: Mar 12, 2024

Unearth the potential of STARBUCKS CORP (NASDAQ:SBUX) as a dividend stock recommended by our stock screening tool. NASDAQ:SBUX maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Assessment of 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 2.40, SBUX pays a better dividend. On top of this SBUX pays more dividend than 85.07% of the companies listed in the same industry.
On average, the dividend of SBUX grows each year by 10.79%, which is quite nice.
SBUX has paid a dividend for at least 10 years, which is 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.
The dividend of SBUX is growing, but earnings are growing more, so the dividend growth is sustainable.

How do we evaluate the Health for NASDAQ:SBUX?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:SBUX, the assigned 5 for health provides valuable insights:

An Altman-Z score of 3.06 indicates that SBUX is not in any danger for bankruptcy at the moment.
SBUX has a Altman-Z score of 3.06. This is in the better half of the industry: SBUX outperforms 79.85% of its industry peers.
SBUX has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as SBUX would need 3.42 years to pay back of all of its debts.
SBUX has a better Debt to FCF ratio (3.42) than 81.34% of its industry peers.

Profitability Analysis for 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 better Return On Assets (14.71%) than 91.04% of its industry peers.
The Return On Invested Capital of SBUX (22.00%) is better than 94.03% of its industry peers.
SBUX had an Average Return On Invested Capital over the past 3 years of 18.26%. This is significantly above the industry average of 10.36%.
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 Profit Margin of 11.70%. This is in the better half of the industry: SBUX outperforms 79.10% of its industry peers.
The Operating Margin of SBUX (15.69%) is better than 67.91% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.