Last Time On xHitoBlog-Z ... xHitoBiteZ Ranted About Digimon World 3.
Check out my Rant Blog Post Here
People like to hate on popular and successful corporations. I'll admit, there was a time where I hated on Apple. I've learned that when you hate on companies like these, you lose big.
Did you know that Apple and Starbucks are both publicly traded companies? Well, if you didn't know, then now you know. Both companies pay dividends, but you wouldn't invest in these companies for their dividend payout. Although, Apple is starting to seem like a stalwart and when companies become stalwarts, you generally invest in them for dividend payments. Either that, or you think it's a turnover stock.
Starbucks (SBUX)
What is Starbucks? Well, Starbucks is a pretty big company that sells coffee.. and other stuff.. but mostly coffee. They did buy out Teavanna towards the end of 2012 for about $620 million, but that doesn't account for much of their revenue. In Starbucks 2014, their tea business made about $1 billion in revenue (according to management) and plans to double it by 2020. You can get more details here. And there 2015 10-K here. Their 10-K form is about 110 pages, so make sure you give yourself 3-4 hours to read it. It's a lot to take in. I usually take a break for about 15 minutes after I read about half of it.
Starbucks has about 23,000 stores around the world. About 53% are company-operated and the remaining are licensed stores. However, their company-operated stores represent nearly 80% of total net revenues during fiscal 2015.
During fiscal 2015, 73% of company-operated revenue came from their beverages -- 19% from food -- 3% from single-serve coffees and teas -- and 5% from ready-to-drink beverages, coffee-making-equipment and other items.
So, why do people hate on Starbucks?
Well, they charge a whole lot for their coffee. But, they have the cleanest bathrooms ever. You can also sit their for as long as you want and use their wifi! Sure, you can argue that Dunkin Donuts allows you to do that, but at Dunkin Donuts they have signs that say -- 20 minute limit -- and if you stay much longer than that, they get angry and kick you out. Starbucks also has comfy sofas AND charging stations. You can charge your phone or laptop for no addition charge. Starbucks has wireless charging too -- that's pretty neat -- if your phone or laptop doesn't have that wireless charging thing built in though, it won't work. However, most phones nowadays have that feature built in. Not sure about laptops -- but that's because I don't laptop at Starbucks.
People also complain that Starbucks puts too much ice in their ice coffees and ice lattes. (such a first world problem) Then you have those haters who say Dunkin Donuts is way better. All I'll say is -- Have you ever drank a Starbucks coffee and Dunkin Donuts coffee side by side? If you're a hater and you haven't, then just go home. Seriously, just go home.
Now, Dunkin Donuts is cheaper than Starbucks. -- But I'm pretty lucky. I get a small coffee with caramel syrup. At Dunkin Donuts (in my area) a small coffee costs me $1.69 plus tax and at Starbucks (in my area) a small coffee costs me $1.79 plus tax. Only $0.10 more for coffee that tastes way way way better, and CHARGING STATIONS! Yes, I sit at Starbucks just to charge my phone -- Unless I'm in a rush.
I know most people get more "advanced" drinks (Great coffee terminology, eh?) but I don't understand much of that so I just get basic coffee. Unless I'm with my sister, she knows a lot about Starbucks drinks so she get's me the good stuff... Not sure how much they cost because I'm usually sitting at a table while she orders.
Anyway, if you're an investor -- never hate on a company -- because then you'll never get those 10, 20, or 30 baggers. Starbucks has had 6 stock splits since it went public in June 1992. It's also been paying a steady dividend every quarter since 2010. It's a low dividend yield, but Starbucks (in my opinion) is still a growth company. Growth companies generally don't pay dividends -- if they do, however, it's small. Starbucks dividend yield is about 1.42%. Let's talk about Apple! :D
Apple (AAPL)
Why am I talking about Apple when this blog is about Starbucks? Well, I was a hater once, and I thought I'd include a bit about Apple since I hated on them. Why not just blog about Apple and not include Starbucks? Well, the new company people like to hate on now is Starbucks.
In the beginning of 2007, Apple was trading at about $12 per share. It shot way up to $28 per share. However, in 2008/2009 we had The Great Recession / Financial Crisis and Apple dropped back down to $12 - $13 per share. But now, the stock trades at about $100 per share. AND in 2014, there was a 7-1 stock split. That means if you bought 100 shares before the split, you would have 700 shares after the split. So, for people who weren't hating on Apple, bought it before recession for about $12 or after the recession for about $12-$13 are pretty darn happy right now.
For people who bought 100 shares of Apple at around $12 per share -- paid about $1200. ($12 per share * 100 shares)
The stock trades around $100 per share today, but had a 7-1 split in 2014 -- so that means your 100 shares are now 700 shares.
$100 per share * 700 shares = $70,000. Yes -- today your $1200 is worth about $70,000. That's a 57 bagger! -- Yes, your investment is worth 57 times more then the initial amount.
No comments:
Post a Comment