Starbucks Has Nowhere To Go But Grow

This week I’m seeking a prestigious and long-term dividend-paying stock from the consumer cyclical sector. 

That cyclicals sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Recreational Vehicles, Plastics, Textiles, and all such consumer aimed enterprises.

Today I’m reviewing a large-cap restaurant firm named Starbucks Corporation. Its trading ticker symbol is SBUX. 

Starbucks Corp is the roaster, marketer and retailer of specialty coffee. Operating globally, it sells a variety of coffee and tea products. It sells goods and services under brands including Teavana, Tazo, and Seattle’s Best Coffee.

The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, and food and snacks. 

The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. It offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, premium Tazo, and Starbucks VIA brand names. 

As of July 26, 2018, the company operated 28,720 stores. 

Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

I use three key data points to gauge the value of any dividend equity or fund like Starbucks Corporation (SBUX): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

SBUX Price

Starbucks’s price per share was $56.45 at yesterday’s market close. A year ago its price was $55.15 for a gain of $1.30 per share.