Is Owning 3,968 Shares of Starbucks Worth It for $10,000 in Yearly Dividend Income?
Its income potential is in line with seemingly similar income stocks. There's always more to the story, though.
Owning 3,968 shares of Starbucks would require $10,000 in yearly dividend income. This appears to be a reasonable investment in the coffee chain. Starbucks pays a consistent dividend and has increased it for 16 consecutive years. However, the full picture reveals potential issues. Starbucks' stock price has risen 36% over the past year, but it yields only 2.3% - less than Coca-Cola's 2.9%.
Moreover, profits and earnings have been volatile for several years. The company's growth has slowed as it faced leadership changes, staffing challenges, and market saturation. Starbucks has 41,304 stores worldwide, with the majority in the U.S. Despite some signs of recovery, such as a 7.9% increase in same-store sales, sustained growth remains uncertain.
More stable income options like 10-year Treasuries or Coca-Cola may offer better value than Starbucks.
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