New #1 DIVIDEND STOCK, New CEO Brian Niccol

HUGE NEWS: Thanks to incoming CEO Brian Niccol, I have a new #1 dividend stock position in my portfolio. Yes, with Starbucks stock up 20% in a single day, SBUX is now my number 1 position (again). I’m excited to share my thoughts on incoming CEO Brian Niccol, and what the news means for my personal investment.
#starbucks #brianniccol #sbux

Timestamps:
0:00 INTRODUCTION
0:43 Starbucks (SBUX) is moving “Onward”.
1:12 SLIDE 1: BRIAN NICCOL REPLACES LAXMAN NARASIMHAN AS CEO OF STARBUCKS (SBUX)
1:20 Brian Niccol begins September 9, 2024.
1:30 Brian Niccol became Chipotle (CMG) CEO in 2018. Under his leadership, CMG is up around 800%.
1:55 Starbucks Press Release: At Chipotle, Niccol transformed people and culture, brand, menu innovation, operations, digital transformation, new standards, all while increasing retail team wages.
3:13 “Pour Your Heart Into It” by Howard Schultz. They aspire to be the most recognized brand in the world.
4:04 SLIDE 2: STARBUCKS (SBUX) IS NOW MY #1 DIVIDEND STOCK POSITION (AGAIN)
4:20 Check out the pinned commend for my Corner Patreon.
4:58 Yesterday SBUX was 7.7% of my portfolio, today it’s 9.1% of my portfolio.
5:21 When an investor sees value, don’t assume that value (price range) will last forever.
5:32 SBUX is not on my watchlist anymore. I’m not adding more here. I’m just holding and reinvesting dividends.
6:16 The promise of great leadership is awesome, but let’s see some results now. The stock needs to grow into its valuation.
7:11 SLIDE 3: DON’T PROJECT YOUR ASSUMPTIONS ONTO A STOCK
9:00 The last two quarters were not that bad. They certainly don’t show a company that’s “going out of business” as the media would lead you to believe.
9:14 Q3 Results
9:23 Q2 Results
11:26 Did this news really warrant 20% gain in a single day? Were the numbers really that bad?
11:49 I do not think that SBUX is in crisis, but I’m excited about a bright future.
12:02 SLIDE 4: BUSINESS GROWTH IS NOT LINEAR
12:16 I think a lot of people sold the stock because they listened to the negative sentiment.
12:55 Long-term investors need to remember to tune out the noise.
13:35 Long-term investors need the right perspective.
13:55 Look at a stock like Microsoft (MSFT) that plateaued for many years, but now it’s in hyper-growth territory.
14:18 SLIDE 5: HAVE A LONG-TERM PERSPECTIVE WHEN INVESTING
14:42 I try not to get excited about news like this.
15:08 I hold a diversified portfolio so single-day fluctuations don’t matter too much.
15:39 SLIDE 6: STARBUCKS (SBUX) DIVIDEND STOCK ANALYSIS
16:03 The 2024 Forward PE was 21, as of yesterday. Now, the 2024 forward PE is at 26. This seems expensive to me.
16:24 The starting dividend yield drops from 2.96% to 2.46%.
16:39 It’s expensive now. The future growth is now priced in.
17:26 I follow my heart, my conviction, my analysis.
17:47 I hope that Brian Niccol motivates his team to levels of great excellence.
18:45 My long-term goal for SBUX is seeing them hit $200 billion in market capitalization.
19:52 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Starbucks (SBUX), Johnson & Johnson (JNJ), and British American (BTI). I own these stocks in my personal dividend stock portfolio.

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Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

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[ppcian]

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Thanks so much, everyone, for your support. I hope you enjoy the video today!

(Disclosure and Disclaimer: I’m long SBUX and BTI. Please see video description for all disclosures and disclaimers.)

[B_or_not_B]

Loaded up a ton around $72-73. Was very excited when I woke up this morning and saw the news!

[arigutman]

I was super hyped up to see the news with the new CEO, and from a great company, now hopefully he can turn Starbucks around. I actually sold out of my SBUX position within my IRA to collect the profits and put it elsewhere given my age as a younger investor seeking more ROI... However, still hold SBUX elsewhere. Great video as always, Ian. Looking forward to having you on Masters of the Market, several investors requested you!

[PlaybookEmpire]

I was buying during the crash, I am certainly proud of the board taking this step to provide for the shareholders! Like myself!

[Bob_]

CNBC should have brought Ian on as soon as the news dropped.

[Jayvazquez]

My SBUX position is now up over 12% and I’m glad I held thru all the panic!
Nice video!!

[jessehamlin]

Congrats Ian! I sold after last earnings report but now wish I had held. This one really came out of left field!

[jonathantaylor]

Let’s go SBUX! I wished price stayed lower for longer.

[markmethner]

Like the move. Was adding in the 70s myself and sold my higher priced shares today for profit. Still my #3 position after the sell. May buy back some depending on if it falls back some by Friday to lock up dividend.

[joelarvell]

I just knew you had something to say after that CEO announcement 😂 Love it!!

[miguelbreton]

It is funny because I have a very similar thought process as you and it is very refreshing to hear !

[brucemckee]

That's great news for you IAN and all shareholders . Its good not to get caught up in the price swings and
concentrate on the cash flow.

[TemujinBC]

Congrats man. Wish I had pulled the trigger earlier in the week, but didn't have much dry powder to spare.

A lesson to be learned!

[crownkingchris]

I knew you wouldn’t let us down. Definitely wanted to hear your thoughts. I appreciate hearing that you are holding off on buying until it makes sense to do so. Some might get blinded by this exciting news.

[bowmadness]

First time watching your video. Very good video, very objective. I have never been able to justify Starbucks or Dunkin' cost for a cup of coffee. I think if the average income person tracked their monthly expense on coffee at Starbucks they would be shocked. Love my Keurig and fifty five cent great tasting coffee.

[robertclarkson]

Thank you! Great job with the diamond grip. IMO, I think 10% was the firing of the current CEO and 10% for hiring Chipotle CEO. In other words, whomever they hired, this stock was going up 10%.

[MrGiggity]

SBUX needs to put some Optimus robots to work to get rid of their union problem

[kfordham]

I was buying here and there at these levels over the last couple months since the Q2 news. Wish I had bought more but it's still one of my larger positions. If there is a dip back into the 80's I'll probably nibble a little more to round out my position.

[moresugartradercc]

Good news for star bucks share holders

[Make-A-Mil]

great content as usual Ian. I sold after the 20% uptick yesterday. Today it's down a few percent after the buying frenzy. I agree, I didn't think the announcement of a new CEO justified the quick increase in price. Therefore the valuation is now too high so I sold it off. I will keep writing puts on it and become a shareholder again in the future no doubt. But for this round of madness, I may end up sitting it out (if the price skyrockets). If not, I'll be a shareholder again!