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Newly Blue: 5 Blue-Chip Stocks to Buy

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Blue-Chip Stocks to Buy: Starbucks (SBUX)

blue chip stocks to buy starbucks stockMcDonald’s (MCD) is a blue chip stock in the eyes of many investors, and it’s time to add Starbucks (SBUX) to the list of stable dividend players who operate in the restaurant space.

SBUX stock has traded publicly for more than 20 years, and currently boasts an impressive market capitalization of $56 billion — right in the ballpark of General Motors (GM) and Prudential (PRU).

And while Starbucks only recently began paying dividends four years ago, its dividend growth has been amazing. Payouts are up 160% from 10 cents per share quarterly in 2010 to 26 cents currently. That might only translate to a 1.4% yield, but at only 40% of this year’s earnings, that leaves plenty of room for future growth.

As for stability, Starbucks continues to expand its brand globally and is as entrenched as any restaurant in the U.S. Also the company has just $2 billion in debt and liabilities just shy of $3 billion — an amazing balance sheet for a company this size, and particularly one in the restaurant sector.

Oh yeah, and SBUX is sitting on $1.7 billion in cash and short-term investments.

While you may not think of Starbucks first when you think of blue-chip stocks to buy, give this coffee king a look. Because the stability and dividends are certainly there — and will be there in the years to come.

Article printed from InvestorPlace Media,

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