"Shares of Starbucks ( NASDAQ:SBUX) may very well be a bargain now that the worst of the multi-year sell-off seems to be in the rearview mirror. More recently, shares have started gaining again, with the long-time laggard now up close to 11% year to date. Undoubtedly, it's tough to tell if the relative outperformance can continue, especially as the firm wanders into its coming quarters."
"As Niccol looks to bring back the premium and "third place" kind of experience, I do think the Seattle-based coffee giant is en route to returning to what made the chain so great. Indeed, by returning to its roots and revamping stores with new furnishings and more of a fancy café feel (think to-stay mugs), I think Starbucks is poised to become successful again."
Increased market volatility can create opportunities to acquire steady dividend stocks at slightly lower prices and capture additional basis points of yield. Two dividend-paying blue-chip names are beginning to look cheaper and may merit attention if volatility continues. Starbucks recovered after a multi-year sell-off and is roughly 11% higher year-to-date. CEO Brian Niccol is pursuing a turnaround that emphasizes returning to a premium "third place" experience, revamping stores, streamlining the menu, and launching functional innovations such as protein beverages to regain share and restore earnings growth.
Read at 24/7 Wall St.
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