Why Starbucks is so attractive as a dividend growth stock and investment for long-term returns.

Why Starbucks is so attractive as a dividend growth stock and investment for long-term returns.

According to a report by www.onvista.de, Starbucks achieved a successful financial year in 2023. The company reported an 11.55% increase in revenue to $35.98 billion and increased net income by 25.69% to $4.12 billion. In addition, Starbucks plans to increase the number of its stores by 7% and expects sales growth of 10% - 12% and an increase in earnings per share of 15% - 20% for fiscal year 2024.

In addition, the company is heavily focused on the Chinese market, planning to expand by 13% in China and double its branches in India.

Starbucks shares are currently trading close to a 1-year low and offer a dividend yield of 2.48%, which is well above the S&P 500 average. Additionally, the company has increased its dividend by an average of 17.11% annually over the past 10 years.

From an economic perspective, Starbucks' positive business development shows the company's strong position in the market. The planned expansion in China and India could help to further increase sales and gain new market shares. The high dividend yield and continuous dividend growth make it an attractive investment option. The favorable valuation of the stock compared to the historical price-earnings ratio also makes Starbucks interesting for investors.

Overall, the positive business performance and expansion plans suggest that Starbucks will continue to have a strong position in the industry and investors can expect good returns.