Starbucks: Dominating Coffee Over The Long Term

Starbucks Corporation (NASDAQ:SBUX) is a stock that I own by have not yet written about. But, at the request of one of my readers who commented on my recent article on McDonald’s (NYSE:MCD), I am analyzing Starbucks. Starbucks is a well-known company with a strong brand. I like Starbucks. They sell a lot of coffee, and their food is decent. Even my kids like Starbucks. They are too young to drink coffee, but they like browsing through the breakfast case and ordering muffins, croissants, or cake pops. Starbucks is relatively new to paying a dividend having only initiated one in 2010. But since then, the company has raised the dividend at a rapid clip. The trailing 5-year growth rate is almost 25%. Over time, I expect Starbucks to continue returning cash to shareholders via dividend and buybacks. The company is also growing at a fairly rapid pace, driving top-line and bottom-line growth. For these reasons, I view Starbucks as a long-term buy at the right price.

Please read the complete article at my profile on Seeking Alpha.

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