tag:blogger.com,1999:blog-6587699706949333863.post4359993117658888576..comments2024-03-27T23:39:33.499-05:00Comments on Passive Income Pursuit: Starbucks (SBUX) Dividend Stock AnalysisPassive Income Pursuithttp://www.blogger.com/profile/13947101854482544346noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6587699706949333863.post-25856828269902837222013-09-25T06:21:09.484-05:002013-09-25T06:21:09.484-05:00Good review of SBUX.
They have great growth potent...Good review of SBUX.<br />They have great growth potential especially in China where they are expanding fast. Not talked much about... they are testing wine and beer sales. They realized 80% of their sales comes before noon. They have all that real estate and manpower being under utilized. If they get beyond testing it in a couple towns and roll that out that would probably get me back in as a shareholder. They seem to be taking their time with that.<br />I owned them for a number of years and sold them last month.<br /><br />Why did I sell? Because they were a 1% yielding 36 P/E ratio company. There are other companies out there that are undervalued, good (but not great growth prospects) and a better yield. Pulling Myself Uphttps://www.blogger.com/profile/03676667648941966869noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-78998012283749523892013-09-25T06:15:50.956-05:002013-09-25T06:15:50.956-05:00The Executioner: The question is, was MCD at a 36 ...The Executioner: The question is, was MCD at a 36 P/E when it started its dividend policy? I'm not one for buying a dividend stream at any price. At a 1% yield like SBUX has you can have nice raises that don't move the yield much.Pulling Myself Uphttps://www.blogger.com/profile/03676667648941966869noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-49258678382169542382013-09-24T17:23:52.670-05:002013-09-24T17:23:52.670-05:00Integrator,
When you have to rely on medium to l...Integrator, <br /><br />When you have to rely on medium to long term growth rates that are elevated for the investment to pan out then you're much more at risk. Will KO and PG consistently be able to provide between 5-10% growth every year, I'd say they probably will. But forecasting extended 10%+ growth over the long term for SBUX, I'd say they probably will but it's not as sure of a thing. The more growth oriented the company the bigger margin of safety that an investor should require. I really like SBUX the company, but at current valuations I don't like it so much. One day the valuation will come down, maybe with the next debt ceiling debate, but for now I'll have to pass.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-89197310808959098592013-09-23T20:07:39.334-05:002013-09-23T20:07:39.334-05:00The challenge with the Dividend Upstarts as I call...The challenge with the Dividend Upstarts as I call them (ie large cap companies that have small yield, newly introduced dividends, but strong growth) is whether that growth is sustainable over the medium to long term. Otherwise you get suckered into small yield that just remains small. Starbucks looks to have significant potential to me. Revenue growth and Profit are surprisingly strongly growing. While the stock doesn't have a tailwind similar to Visa in my view (ie trends converging to drive demand), the stock looks like an interesting one to consider at some point when its a little better valued.Integratorhttp://financiallyintegrated.comnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-46334331049333441032013-09-23T17:46:04.300-05:002013-09-23T17:46:04.300-05:00DGI,
I wish it wasn't because the growth and...DGI, <br /><br />I wish it wasn't because the growth and DG prospects are strong, but I have to agree that you're having to count on the growth playing out at analyst estimates or faster. If the growth comes slower then it'll take much longer to earn a return and obtain decent yields.<br /><br />I never really liked BKW when I was a teen and when I was in college, but I recently gave them another shot and there food seems much better. BKW is interesting and I might have to take a look at them sometime in the future.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-87108401950951459352013-09-23T08:29:28.595-05:002013-09-23T08:29:28.595-05:00Starbucks is priced for perfection right now. Unfo...Starbucks is priced for perfection right now. Unfortunately, it was similar to McDonald's in its early history about 10 - 15 years ago. The issue is that SBUX simply decided to pay dividends 10 - 15 years later than MCD did..<br /><br />I would say the company that could be the next MCD is actually Burger King...I have 5 - 6 MCD restaurants around my neighbourhood, but only on BK..Dividend Growth Investorhttp://www.dividendgrowthinvestor.com/noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-27833088370097981932013-09-23T07:27:00.048-05:002013-09-23T07:27:00.048-05:00AAI,
Hope you enjoyed your trip. I want to get ...AAI, <br /><br />Hope you enjoyed your trip. I want to get up to Seattle and Portland, but it'll have to be a summer trip. <br /><br />I've never really drank much coffee or their sugar with a splash of coffee, but I know that many many people do. The stores are always packed and most people can't go without their daily Starbucks. There's a reason that cutting out the daily Starbucks is mentioned so often if you're trying to save money, although I think there's much bigger fish to fry than your daily coffee. I just wish some of their ratios were a bit better, specifically their payout both off EPS and FCF. It's still not anything to worry about as they aren't at high levels but I expected them to be lower. Love the company and would like to get a hold of some shares, but just not at current prices. Of course we always want lower prices.<br /><br />I hate the anchoring effect that our mind goes through. I've had a tough time trying to add to positions because I keep thinking back to the price per share from a few years ago, when the important thing is really the value per share. I'm getting better at this though.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-83976744663153573322013-09-22T18:45:14.257-05:002013-09-22T18:45:14.257-05:00I am just getting back from Seattle where I visite...I am just getting back from Seattle where I visited the very first Starbucks. I am an avid drinker of their coffee and love the company but also feel they are a little overvalued. I owned 100 shares around a cost of $12/share and sold them for a small profit several years ago. I am kicking myself now but cant bring myself to pay the current prices for their stock. Thanks for the analysis.All About Interesthttps://www.blogger.com/profile/13412467028446944315noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-49792303347588752232013-09-22T17:19:11.606-05:002013-09-22T17:19:11.606-05:00The Executioner,
I have to agree on that one I j...The Executioner, <br /><br />I have to agree on that one I just don't think the value is quite there right now. If the price comes down a bit I'd be interested. I think SBUX has great prospects going forward but at current valuations I think too much of the growth is priced in and the growth would have to play out. I still love the company though and liked both their acquisitions of Teavana and La Boulange. Both of those should turn out real well although Teavana will be more of an international play. I wish I had jumped on it before but I just wasn't looking in that direction at the time. Now I'll be ready in case there's a drop in price.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-50527817023185276812013-09-22T16:38:03.992-05:002013-09-22T16:38:03.992-05:00If you had the choice, would you rather invest in ...If you had the choice, would you rather invest in MCD now, or at the beginning of its current dividend growth streak?<br /><br />SBUX is going to be around for a long, long time. We are witnessing a MCD-like stock at the beginning of its dividend growth run, instead of at its mature stage.The Executionerhttps://www.blogger.com/profile/04419763605714282331noreply@blogger.com