Happy Monday!

Welcome to the first edition of Dividend Data Weekly, an email newsletter releasing every Monday morning before market open! It highlights some of the most important news and analysis in the dividend investment space. Here to get you ready for a week of investing!

In today’s edition, we kick things off by taking a look at Starbucks shocking earnings report and answer a critical question: Am I a buyer of this caffeine crash?

Also, before we jump in, did you see the standing ovation that was dedicated to Charlie Munger at the Berkshire Annual Meeting this weekend? What an awesome moment and to say it was well deserved is an understatement.

Next edition, we will have so much more from Berkshire’s main event so make sure to stay tuned!

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THE KEY STORY

Starbucks Earnings Collapse

Starbucks shared very disappointing second quarter earnings with $8.56B in revenue and $0.68 in EPS versus $9.56B in expected revenue and $0.79 in expected EPS.

The Company’s rough quarter along with a cut in their annual guidance led to the stock dropping more than 15% the next day.

So, am I a buyer of Starbucks at these levels? Absolutely.

Here are three reasons why I am intrigued:

1. The stock has dropped to ‘22 levels and is now only trading at a P/E of 20 with a yield at now ~3%

2. Historically, Starbucks is a strong dividend growth stock with a dividend growth CAGR of 15.93% & 9.63% CAGR in the last five years

3. This is the highest yield you can buy Starbucks at in this past decade!

Finally, people love (or should I say are addicted!) to their caffeine!

For much more of my thoughts on Starbuck’s stock make sure to check out my most recent YouTube video here where I discuss $SBUX at ~27 minute mark.

THE INTERVIEW

Cramer Interviews Starbucks CEO

The normally CEO friendly, Jim Cramer, had a relatively intense interview with the new CEO of Starbucks, Laxman Narasimhan, after the rough Q2 earnings (link above).

While the Starbucks CEO mentioned that it is a tougher consumer environment in their space, Jim stood strong sharing that many other food & beverage institutions like McDonalds are not seeing similar issues.

Who doesn’t want to watch Jim Cramer BODY SLAM a new CEO on live television like it’s the WWE?

INVESTING ARTICLES & STORIES

Apple, Google, Pfizer

1. Apple announces largest-ever $110 billion share buyback as iPhone sales drop 10% (CNBC)

2. Google is officially a $2 trillion company (The Verge)

3. Pfizer stock gains 7% after earnings beat, company calls dividend ‘secure‘ (Yahoo)

4. Coca-Cola tops earnings estimates, hikes revenue outlook on higher prices (CNBC)

5. KB Home board authorizes $1 billion stock buyback, raises dividend by 25% (MarketWatch)

   
   

NOTABLE EX-DIVIDEND DATES THIS WEEK

Intel, Ford , Walmart

Why does this matter?

Investors who purchase a stock on its ex-dividend date or after will not receive the next dividend payment.

• 5/6 — DHL Group, Intel Corp., Las Vegas Sands Corp, MetLife Inc.

• 5/7 — Citizens Bancorp, Ford Motor Company, United Rentals Inc.

• 5/8 — Levi Strauss & Co., Pacific Financial Corp.

• 5/9— Pfizer Inc., Charles Schwab Corp. Walmart Inc., SiriusXM Holdings Inc.

• 5/10 — Aramark, Rockwell Automation Inc., Foresight Financial Group Inc.

SOMETHING FUN

The Journey Starts Somewhere!

Thanks for the read! Let me know what you thought by replying back to this email.

— Zach

Disclaimer: Dividend Dividend Weekly (Dividend Data) is not a professional financial service. All materials released from Dividend Data Weekly (Dividend Data) are for educational and entertainment purposes. Dividend Data Weekly (Dividend Data) is not a replacement for a professional's opinion. Contributors to the Dividend Data Weekly (Dividend Data) might have equities mentioned in the newsletter