15 Best NASDAQ Dividend Stocks To Buy

4. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 76

Starbucks Corporation (NASDAQ:SBUX) ranks fourth on our list of the best NASDAQ dividend stocks. The American multinational chain of coffeehouses specializes in a wide range of coffee beverages. It delivered mixed earnings for fiscal Q4 2024, with revenue totaling $9.07 billion, reflecting a 3.2% decline from the previous year. However, its cash flow remained solid, with $6 billion in operating cash. The company also expanded its presence, adding 722 new stores, bringing the total to 40,199 locations. Of these, 52% are company-operated, while 48% are managed under licensing agreements.

Despite the economy, especially consumer spending, showing resilience amid ongoing uncertainty, Starbucks Corporation (NASDAQ:SBUX) has struggled to achieve similar success. The highly competitive and fragmented retail coffee market poses significant challenges. In the US, the top five coffee chains control less than half of the market, offering consumers plenty of alternatives. With no significant switching barriers, customers can easily choose other options, leaving the company with little margin for error—an issue that seems to be affecting its performance. The stock has surged by just 0.5% in the past 12 months.

Starbucks Corporation (NASDAQ:SBUX)’s dividend keeps it in a safe spot among investors. The company holds a 14-year track record of consistent dividend growth and currently offers a quarterly dividend of $0.61 per share. Its dividend yield on January 15 came in at 2.62%.

Invesco Distributors, Inc. highlighted Starbucks Corporation (NASDAQ:SBUX) in its Q3 2024 investor letter. Here is what the firm has to say:

“Starbucks Corporation (NASDAQ:SBUX): The coffee retailer has struggled with China’s economic softness, declining sales and weaker US store traffic that have hampered revenues and profit margins. However, we believe the company has several positive, long-term catalysts, including strong growth in store count, better labor relations, improving productivity from labor, technology and innovation, and easier future earnings comparisons. We believed a management change was imminent, and shortly after we purchased the stock, Starbucks named a new CEO, which was seemingly greeted enthusiastically by investors.”

The number of hedge funds tracked by Insider Monkey holding stakes in Starbucks Corporation (NASDAQ:SBUX) grew to 76 in Q3 2024, from 70 in the previous quarter. These stakes have a consolidated value of over $3.2 billion. With over 11.7 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.