Starbucks has been a solid dividend growth stock since it paid its first dividend in 2010.
Over the past 7 years, Starbucks has compounded its per-share dividend at a rate of 25.8% per year.
Starbucks’ short dividend history means that it does not qualify to be a Dividend Aristocrat (stocks with 25+ years of consecutive dividend increases) or a Dividend Achiever (stocks with 10+ years of consecutive dividend increases).
However, we continue to like this stock because we believe its future dividend growth will be well-supported by its long international growth runway, particularly in China.
On July 27, Starbucks gave us an update on their business progress in their third quarter earnings release, which covered the 13- and 39-week period ending July 2.
This article will analyze that earnings release in detail, and provide an update on the company’s valuation and dividend growth prospects.