Starbucks (NASDAQ:SBUX) has been a remarkable growth story over the past decade. The company's ability to replicate its U.S. success in foreign markets has generated remarkable returns. On the other hand, it has also become a stellar income play.
In the Dividend Stock Hour that aired on Fool Live on Oct. 29, Fool.com contributors Danny Vena and Jason Hall discuss why investors don't have to settle for just growth or income.
Danny Vena: I think Starbucks would be a great example of that. Starbucks is another company where I bought that because I thought Starbucks has a great business model, it's repeatable. They can take that model that worked so successfully in the United States. They can spread it to international markets. They have good people at the helm. I trust their management. They have been able to do just that, and at the same time, their dividend has become a very solid dividend payer. I'm going to pull up Starbucks dividend chart here just so that I can share it in just a second here, I'm going to share my screen. I'm very pleased with Starbucks as a dividend. It looks like their dividend yield right now is 1.87%, which is very solid, and the dividend itself has gone up over the last decade.
Jason Hall: Eight hundred percent.
Vena: That's about 600%. But still, I mean, that's wonderful.
Hall: Go back to the beginning of 2010. Go back to January of 2010 because they increased it earlier in the year.
Vena: OK. There we go. Boom, 800%.
Vena: Yeah. Talk about an increased dividend. Mind you, I also want to throw this up here because it's not just the dividend. Look at the price increase over the last 10 years. This is a stock that has gone up over 600% over the past decade, as well as being a solid and reliable dividend payer.