#2 - Starbucks (NASDAQ:SBUX)
The next cheap dividend stock to consider is Starbucks Corp. (NASDAQ: SBUX). The stock is down about 7% in 2024 and 4% in the last month. Investors appear to be taking a profit after the company missed on the top and bottom lines in their first quarter 2024 earnings report.
But Starbucks's case centers around pricing power. Despite higher prices, the company is generating about 4% higher spending per ticket. This speaks to the company's 27% gross margin, which means the company is having little issue passing higher commodity prices onto the consumer.
SBUX stock is trading near its 52-week low at $88.12. However, analysts see a 23% upside in the stock, which likely means they feel the 16% earnings increase is not fully priced.
And SBUX currently has a dividend yield of 3.59%, and the company has been increasing that dividend for the last 14 consecutive years.
About Starbucks
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.
Read More - Current Price
- $95.46
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 17 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $101.12 (5.9% Upside)
