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Is Starbucks Stock an Undervalued Dividend Stock to Buy?

newsfeedback@fool.com (Parkev Tatevosian, CFA)
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⚡ Quantum Brief
Starbucks stock (SBUX) is outperforming major market indexes in early 2026, trading at $93.84 as of March 20, up 1.38% in a single day. The company’s recent volatility includes a 9% drop in one week earlier in March, sparking debate over whether the dip presents a buying opportunity for long-term investors. Analysts highlight Starbucks’ dividend potential, though earlier 2026 predictions warned of possible dividend cuts amid broader economic pressures affecting consumer stocks. Despite short-term fluctuations, some argue Starbucks’ brand strength and global footprint could make it a resilient long-term hold, particularly for dividend-focused portfolios. The stock’s performance contrasts with AI-driven market trends, positioning it as a defensive alternative amid tech sector volatility.
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By Parkev Tatevosian, CFA – Mar 24, 2026 at 6:30AM ESTStarbucks (SBUX +1.38%) stock is outperforming broad market indexes in 2026. *Stock prices used were the afternoon prices of March 20, 2026. The video was published on March 22, 2026. Read NextMar 18, 2026 •By Daniel SparksDown Almost 9% in 1 Week, Is This Your Chance to Buy Starbucks Stock?Mar 17, 2026 •By Neil PatelCould Buying Starbucks Stock Today Set You Up for Life?Feb 15, 2026 •By James HiresWorried About AI Stock Prices? This Beaten-Down Alternative Is Potentially the Smarter BetFeb 13, 2026 •By John Ballard2 Dividend Stocks to Buy in February and Hold for the Long TermFeb 10, 2026 •By William DahlPrediction: This Iconic Stock Will Slash Its Dividend in 2026Feb 7, 2026 •By Neil Patel3 Things to Know Before You Buy This Stock That's Up More Than 27,000% Since Its IPOAbout the AuthorA Fool since 2019, and a graduate of Cal State LA with a B.S. in Finance and M.A. in Economics. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors.TMFParkevX@TMFParkevStocks MentionedStarbucksNASDAQ: SBUX$93.84(+1.39%)+$1.29*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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Source: The Motley Fool

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