5 Dividend Growth Stocks Popular on Robinhood

4. Starbucks Corporation (NASDAQ:SBUX)

Dividend Yield as of April 4: 2.22%

Number of Years of Consecutive Dividend Increases: 12

Number of Hedge Fund Holders: 53

Starbucks Corporation (NASDAQ:SBUX), the American multinational specialty coffee retailer, is one of the most popular dividend growth stocks on Robinhood. Starbucks Corporation (NASDAQ:SBUX)’s dividend yield on April 4 was 2.22%, which is above the industry average of 1.89%.

On March 22, Starbucks Corporation (NASDAQ:SBUX) declared a quarterly dividend of $0.49 per share. The dividend is payable on May 27, for shareholders of the company as of May 13. Starbucks Corporation (NASDAQ:SBUX) delivers a dividend payout ratio of 50.11%, indicating stability of payments and simultaneous business growth. 

BMO Capital analyst Andrew Strelzik on April 5 lowered the price target on Starbucks Corporation (NASDAQ:SBUX) to $115 from $125 but reiterated an Outperform rating on the shares. The suspension of Starbucks Corporation (NASDAQ:SBUX)’s share repurchase program to allow for greater investment in employees and stores sends a “clear message” on its priorities, the analyst told investors in a research note. 

According to Insider Monkey’s Q4 data, Terry Smith’s Fundsmith LLP is the leading shareholder of Starbucks Corporation (NASDAQ:SBUX), with 11.5 million shares worth $1.35 billion. Overall, 53 hedge funds were bullish on the stock at the end of December 2021. 

Here is what Polen Global Growth has to say about Starbucks Corporation (NASDAQ:SBUX) in its Q4 2021 investor letter:

“We trimmed Starbucks as a source of funding and to edge our weighting down. While the company has managed well through a difficult environment, we recognize that lockdowns are categorically challenging for this business. Starbucks has a robust mobile order and pay platform fueled by a sophisticated app as well as a strong loyalty program, but this doesn’t alter the fact that the store-based retail business is important to the company. As a result, we felt a smaller weighting was appropriate.”