Money and Finance
Starbucks (SBUX) Dividend Stock Analysis
I've been trying to take a look at some of the next potential dividend growth champions that can string off a 40+ year record such as Johnson & Johnson or Coca-Cola or Proctor & Gamble. I want the core of my portfolio to be made up of the normal stalwarts, but I believe there's a place for at least some position in some of the combination high growth businesses that also are growing their dividends, even though their streaks are fairly short. Last month I took a look at Visa, which fits the bill of the high growth and high dividend growth company that I'm looking for. I like their prospects so much that I also initiated a small position. Today I want to look at another budding dividend growth candidate, Starbucks (SBUX). Starbuck's closed trading on Friday, September 20th at $76.12 giving a current yield of 1.10%. So here's a little reading for you while you sip your Starbucks this morning.
Company Background (sourced from Yahoo! Finance):Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. As of September 30, 2012, the company operated 9,405 company-operated stores and 8,661 licensed stores. Its stores offer regular and decaffeinated coffee beverages, Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages, premium Tazo teas, packaged roasted whole bean and ground coffees, Starbucks VIA Ready Brew soluble coffees, Starbucks coffee and Tazo tea K-Cup portion packs, Starbucks Refreshers beverages, juices, and bottled water. The companys stores also provide various food items, including pastries, prepared breakfast and lunch sandwiches, oatmeal, and salads. In addition, it licenses the rights to produce and distribute Starbucks branded products to The North American Coffee Partnership with the Pepsi-Cola Company, as well as licenses its trademarks through licensed stores, grocery, and national foodservice accounts. The company offers its products under the Starbucks, Tazo tea, Seattles Best Coffee, Starbucks VIA Ready Brew, Starbucks Refreshers, Evolution Fresh, La Boulange, and Verismo brand names. Starbucks Corporation has a strategic agreement with Danone to create and develop a line of dannon-branded fresh dairy products.
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