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Acquisition $SBUX

This stock has been on my watch list seems like forever. Never before have we had such a great opportunity to pick up the shares on the discount for years and lock in that margin of safety. I am talking about 2015 price action levels! Truelly, the Gods of the Stock Market have brought a really great buying opportunity and very glad to share this with you guys. This is the proof that patience pays off as a long term Dividend Growth Investor. Wait for these exact pullbacks/selloffs that create golden entries. In my opinion, one day this company will be a dividend great one day, for the time being lets enjoy the ride.

Company Overview: 

Starbucks Corporation was founded in 1971 and is headquartered in Seattle, WA. The company is the largest American coffee company in the world. Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana and Tazo tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores and the United States foodservice accounts. As of October 2, 2016, Starbucks operated in 75 countries and overseas properties now constitute almost one-third of its stores.

Statistics: 

  • Dividend Yield: 2.9%
  • 5Yr Dividend Growth Rate: 23.9%
  • 3Yr Dividend Growth Rate: 24.1%
  • Payout Ratio: 37.3%
  • P/E: 14.8%
  • Consecutive Years of Dividend Raises: 7
  • Dividend Payout: Quarterly

I purchased 50 shares of Starbucks Corp. (SBUX) for the price of $48.91 per share for a total investment of $2,445.50 adding around $72.00 to my annual dividend income.

This is the 4th time I am initiating a stock acquisition this year. This transaction is my first ever purchase of SBUX stock shares into the portfolio. Currently, SBUX ownership stake represents to be around 2.0% of my current portfolio value. Also, the acquisition of SBUX makes it the 41st company or ownership stake I am invested in.

Conclusion:

The Portfolio “The Dividend Machine” has been updated with link ➡ here.

Thank you for reading & have a great day!

8 Comments

  1. Doug on August 18, 2018 at 20:37

    Good job. I initiated a small position in Jul and definatly want to add more as opportunities exist.

    • DividendVet on August 18, 2018 at 21:03

      Thanks, this company has great fundamentals and now from technical point of view, it looks like it will breakout over the next few months. Very happy with entry point.

      Take care.

  2. Dividend Diplomatsd on August 19, 2018 at 07:31

    Vet –

    Great move going really “in” at that price. Solid purchase!

    -Lanny

    • DividendVet on August 19, 2018 at 14:50

      Thanks, Lanny. I wouldn’t really say that was going “really in” at that price, it was just enough based on the size of the portfolio which is 2%. I wish I was a bit more confident and would have made just a bit larger position, especially when the capital is there, but either way, can’t be greedy. One thing I came to realization over the years is that there is no perfection in the stock market and you have to take what it gives you.

      Adios!

  3. I Want Dividend on August 19, 2018 at 09:14

    Great choice. I have Starbucks also high on my watchlist and will probably also buy some Starbucks shares this year.

    • DividendVet on August 19, 2018 at 14:51

      Yeah, especially at these prices they are giving it away! Enjoy the sale while it lasts.

      Best of luck.

  4. Dividend Gremlin on August 20, 2018 at 09:05

    DVet,

    Big fan of the purchase. It is one I want to add down the line beyond my pitiful handful of shares I have. Enjoy that income!

    – Gremlin

    • DividendVet on August 20, 2018 at 19:15

      Glad to hear you like the purchase, I love the business model and the products they sell, glad to have a small piece of this pie.

      No share amount is pitiful, every share counts and everyone starts from the bottom, just gotta keep on building. I was there…

      All the Best!

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