Starbucks: TANKING Dividend Stock (My Thoughts) [Video]

Starbucks stock is absolutely tanking after a terrible Fiscal Q2 earnings report! Many investors believe this is the end for this coffee giant. What am I doing with this favorite, core dividend stock? Find out in today’s dividend stock investing video.
#dividend #stock #investing

Timestamps:
0:00 Introduction
0:10 Is Starbucks (SBUX) a loser stock? Is this the end for this dividend stock? Will SBUX ever recover?
0:54 Of course I’m not selling my Starbucks shares! Of course this is not the end for Starbucks.
1:00 I have a guest! 2003 Bearista (Pike Place).
2:09 SEGMENT 1: IMPORTANT QUESTIONS TO CONSIDER (LONG-TERM INVESTING)
2:28 Business is not linear. Over the decades, this is a company that will continue to grow, in my opinion.
3:01 Some important questions to consider when investing for the long-term.
3:49 This is a company with a very long, successful history, that had one bad quarter.
4:10 We live in a real time, dynamic world. Things are shifting. Ups and downs come quickly.
4:29 Reminder: Remain diversified. I love SCHD.
4:48 SEGMENT 2: I JUST BOUGHT MORE STARBUCKS (SBUX) STOCK
5:00 I bought more at $74.91.
5:28 Starbucks Fiscal 2024 Guidance: This will be a flat year in terms of revenue and earnings.
6:12 I’m seeing a 2024 Forward PE of 20.92. I feel it’s a fair value, but not a deep discount.
6:43 Dollar cost averaging. I’m looking at the big picture.
7:28 The starting dividend yield is 3.0%. This is rare for SBUX.
7:43 I believe dividend growth will be slow this year.
8:17 SEGMENT 3: THREE THEMES TO SHARE
8:21 THEME 1: MCDONALDS (MCD) WENT NOWHERE BETWEEN 1999 AND 2006
9:20 Stock Chart of McDonalds
9:48 MCD is now at $273.28 (I bought at $73.53 in 2011)
9:58 Stock price can reflect how well the company is performing.
10:51 THEME 2: FISCAL 2023 WAS GOOD ENOUGH FOR 2023 AND 2024
11:05 Revenues up 12% and EPS up 27%
11:40 They grew so fast in 2023, that a lot of the growth is being digested in 2024.
12:24 Growth was front-loaded in 2023.
12:49 THEME 3: Q1 RESULTS (vs. Q2)
13:02 Q1 was solid! Revenues up 8%. EPS up 22%.
13:30 Q2 was bad. Revenues down 2%. EPS down 14%.
14:46 This is a very dynamic world that we live in. The fact that the numbers can swing so quickly illustrates the environment in which we live.
15:35 DISCLAIMER AND DISCLOSURE

DISCLOSURE: I am long Starbucks (SBUX), McDonalds (MCD), and SCHD. I own these stocks (and ETF) in my personal dividend stock portfolio.

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