Founded in Seattle Washington in 1971, this coffee company has 33,833 stores in 80 countries, 15,444 of which were located in the United States. That's a lot of stores and a lot of profit. Down 31% for the year, Starbucks Stock Forecast looks good, and that Starbucks stock dividend looks even better. This is the stock to pick up while it's on sale to branch out or grow your portfolio. With its cult following, it will continue to grow. In this article we'll take a look at Starbucks Dividend and the Companies health overall!
Table of Contents
STARBUCKS ($SBUX) FAST FACTS
Starbucks Stock Price
Starbucks has had a rough 2022, starting the year at $116 and falling to $80 as of June 26th. That's a $36 loss over the last six months. Bad news if you bought it at the all-time high last July at $125. Great news if you're starting a new dividend position, or DCA'ing down on an already established position.
Starbucks Revenue and Free Cash Flow
Starbucks revenue took a hit during the Corona Virus Pandemic just like everyone else. If you take a look at the chart below, their revenue values have returned to all-time highs and are now fully recovered. When plotted out, Starbucks has returned to it's historical revenue values, pushing past $31 billion! Great news for would be investors.
Additionally, Starbucks free cash flow has returned, and they posted $3.6 billion FCF in April 2022! Couple this with a strong profit margin around 14% and Starbucks stock forecast is looking up! Lastly, Starbucks P/E ratio has come back to earth from 133 last June to a normal down to earth value of 21.20 today.
Starbucks Dividend Yield
Starbucks dividend history goes back 12 years and continues to grow every year. Starbucks dividend 2022 currently sits at $0.49 a quarter or $1.96 annually. This puts Starbucks dividend yield at 2.39% (as of June 26th). This is historically high for the coffee company considering Starbucks dividend yield for the 3Y, 5Y, and 10Y are all sub 2%. Starbucks dividend payout ratio is currently sitting around 50% which means there is plenty of room for Starbucks to continue growing their dividend.
Starbucks Dividend Growth Rate
Starbucks has a track record of strong dividend growth with the TTM CAGR around 9.09% and the 10Y CAGR at an astounding 19.58%. These growth rates will help your yield on cost grow quickly after initial investment.
Historically, a Starbucks investment ten years ago would have a YOC of 7.58% and 13.73% if you had bought the company fifteen years ago. Those values are easily in line with most retiree dividend investors when it comes to what they expect to pull during retirement. It's hard to beat a near 10% dividend growth rate on this stock. I expect Starbucks to increase their dividend to around $0.54 - $0.56 to match their average 10% dividend CAGR as we move into 2023.
Starbucks Dividend Date
With an upcoming ex-dividend date, it's time to lock in your position with Starbucks. Starbucks ex-dividend date is August 11th with a dividend pay date of the 26th of August. The pay amount is $0.49 with an expected yield around 2.47% (depending on stock price).
Outlook
I think now is a great time to start a position in Starbucks stock. Beaten down for the year the prices are close to the lows seen during the Corona Virus pandemic and most of Starbucks financial have recovered post COVID. With historically high dividend yields, I would lock in your position prior to August 11th and the expected dividend increase leading into 2023. I hope this article helped you decide if Starbucks is the right investment for you!
Happy Investing!
DISCLOSURE: As of 26JUNE2022, I hold no positions in Starbucks (SBUX) stock. I do expect to invest prior to the Ex-Dividend date and open a LONG position.
Comments