Starbucks: The Next Dividend Growth Story Success Story
- Starbucks initiated its dividend in 2010, and has been growing distributions rapidly since then. I believe that it has the potential to reach dividend achiever status by 2020.
- I expect Starbucks to grow earnings per share by 12%-15% per year in the next decade as it rolls out new stores globally.
- The stock is overvalued today, which is why I am waiting for lower entry valuation. I also have sold long-dated puts on the stock and collected a premium in the meantime.