5 Best NASDAQ Dividend Stocks To Buy

Below we present the list of 5 Best NASDAQ Dividend Stocks To Buy. For our methodology and a more comprehensive list please see the 15 Best NASDAQ Dividend Stocks To Buy.

5. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Shareholders: 55

Dividend Yield: 2.43%

Starbucks Corporation (NASDAQ:SBUX) is hiking its next dividend payment by 8.2% to $0.53, which will be payable on November 23 and which has an ex-dividend date of November 9. Starbucks has raised its dividend each of the last 11 years, growing it at a CAGR of 14.41% over the past five years. Its payout ratio is a manageable 62%.

Stephens analyst Joshua Long initiated coverage of Starbucks in September, slapping an ‘Equal Weight’ rating and $91 price target on the shares. While he’s bullish on the company’s long-term success in the growing coffee market, he believes near-term headwinds in both the U.S. and China will pressure the company’s top line.

Hedge fund ownership of Starbucks Corporation (NASDAQ:SBUX) peaked during the first quarter of 2020 and has fallen by 22% since. Cathie Wood’s ARK Investment Management sold off her small stake in SBUX during Q3. Ray Dalio’s Bridgewater Associates held the largest Starbucks stake as of June 30, owning 3.24 million shares.

Polen Global Growth likes Starbucks Corporation (NASDAQ:SBUX)’s strong same-store sales, but is concerned about the cost pressures facing the company, as revealed in its Q2 2022 investor letter:

“Starbucks, which garners a lower weighting in the Portfolio, had slightly better than average three-month performance. Samestore sales were up double-digits in the U.S. and International exChina, with solid revenue growth across those regions. The company is experiencing cost pressures from wages and input costs though, and China same-store sales were down 23% due to zero-COVID policy restrictions and lockdowns.”