Starbucks: Time To Take A Sip


  • Starbucks has fallen 12% from its highs and, combined with a strong recovery from the pandemic, has become more attractive.
  • Strong total returns over time and a rapidly rising dividend combined with a falling stock price should entice some long-term investors.
  • The stock is not quite a bargain yet, but if current price weakness continues, it easily could get there and may be worth putting on your shopping list.

I don’t often see Starbucks Corporation (SBUX) mentioned very often as a good income stock. Well, maybe I don’t hang out in the right places, but I think it is underappreciated by income investors. I’ve owned Starbucks for years and am very happy with it, so I know there’s at least one income investor who likes it.

As I write this, the overall stock market has been a little shaky recently. We can always debate why that is, but my own conjecture is that it is a combination of the pandemic wearing on seemingly endlessly, an overvalued market for many types of stocks due to too much liquidity chasing too few growth stocks, seasonal factors, and political issues in Washington, D.C.