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.
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