This new buy is primed for growth

Article Excerpt

Starbucks’s decision to begin paying a dividend in 2010 only supported our high opinion of the company. However, we continued to resist recommending it to our readers mainly because the stock was trading at an expensive 40 or more times its earnings. With a current p/e of 22.8, the company’s earnings have done a good job of catching up to its share price. Moreover, we feel Starbucks is now poised to enter its next growth phase, particularly in Asia. The company is also finding new ways to cash in on its popular brand, including a new alliance with Nestle. STARBUCKS CORP. $57 (Nasdaq symbol SBUX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $79.8 billion; Price-to-sales ratio: 3.4; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.starbucks.com) is a leading seller and roaster of specialty coffee. As of April 1, 2018, Starbucks had 14,812 company-operated stores and 13,397 franchised locations. That makes for a total of 28,209 outlets spread across 77 countries. Stores in…

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