Is Starbucks a Great Dividend Stock?
Many of us rely on a delicious cup of hot coffee to start our workday. Starbucks (NASDAQ: SBUX) does a great job of serving up that daily dose of caffeine, along with a growing selection of food items for breakfast and lunch. What many investors may not realize is that the company also pays out consistent quarterly dividends.
When searching for a great dividend stock, there are a few important aspects to consider. The first, of course, is the growth of the underlying business. Dividends tend to grow in tandem with the company's core operations, and investors can ideally enjoy the best of both worlds -- a rising share price and a larger chunk of passive income flowing into their bank accounts. Another aspect is the dividend yield, which measures the return you get from dividends based on the purchase price of the shares.
Does Starbucks possess the attributes of a great dividend stock? Let's find out.
Source Fool.com
