Recent Buy // SBUX

Hi friends! I’m back at it again with another purchase – but with a stock that I’ve already vetted and purchased before. This stock has seen a small pullback in price but this just means I have an opportunity to pick up more shares at a discount. When you’re just starting out in building an investment portfolio, dollar cost averaging is the best way to go.

That’s what I’ve done with SBUX.

I purchased 18 shares of Starbucks Corporation (SBUX) on 4/26/2016 for $57.62 per share.

investing in starbucks corporation

Valuation

  • The P/E ratio is currently 33.3. This is slightly higher than the industry average of 28.7 and much higher than the S&P 500 average of 19.1.
  • Morningstar valuation: $60, rated a 4 star “BUY”
  • S&P Capital IQ valuation: $46.40, rated a 4 star “BUY”

Conclusion

Starbucks Corporation remains an attractive company for me to continue to invest in. Back in November 2015, when I first initiated a position in this company, I believed the company to be financially sound. So when given the opportunity to pick up more shares at a cheaper price, I jumped at the opportunity. I think there is still some potential for another small pullback for SBUX in the short-term but I remain confident in their long-term growth.

This additional purchase of SBUX adds an additional $14.40 to my annual dividend income, based on the current $0.20 quarterly dividend.

Full Disclosure: Long SBUX

Thanks for reading.

Images: Death to the Stock Photo with graphics added by One Woman’s Worth. 

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Author: One Woman's Worth

Born with a dollar and a dream. Hoping to double both in my lifetime.

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