Starbucks Stock: A Good Investment in 2021?
Starbucks stock is looking tastier than ever before. In fact, it’s one of the biggest growth stocks to keep an eye on in 2021. Can the coffeehouse giant continue to impress on the stock market? Let’s take a closer look at Starbucks (Nasdaq: SBUX) and its market potential over the next year.
Starbucks Stock Growth Potential
Starbucks has become a household name and brand since hitting the market in 1971. It’s the world’s largest coffeehouse chain with over 30,000 locations in over 70 countries.
From Frappuccinos to lattes, the Seattle-based company has helped re-invent “coffee culture” across the United States and abroad. However, what’s in store for the future? And how will it affect Starbucks stock and its growth potential?
How can Starbucks continue to push the envelope within an industry that it’s already dominating? That’s the golden question for just about every industry leader.
But Starbucks is staying ahead of its competitors through its popular products, partnerships and community initiatives. Moreover, the company is expanding its community outreach.
In January, Starbucks announced a $100 million fund that will focus on “advancing racial equity and environmental resilience by supporting small business growth and community development projects.” The Starbucks Community Resilience Fund will also partner with the Smithsonian’s National Museum of African American History and Culture to share educational resources and digital initiatives.
As you can see, Starbucks is giving back to its communities while addressing injustices on a national level. This commitment to serve its communities will only bring customers closer to the brand, as well as partnerships with various companies.
This brings us to Oatly. The Swedish food brand is making headlines for its oat-based alternatives to dairy products. And you can now find it in Starbucks across the U.S.
Oatly’s oat milk will be introduced to Starbucks’ customers as a milk alternative without having to buy an entire carton. They’re even releasing a new, signature espresso this spring that incorporates Oatly’s product.
This comes after speculation of an Oatly IPO in the near future. And this new partnership should benefit Starbucks stocks going forward.
Starbucks Stock History
Starbucks’ initial public offering (IPO) came on June 26, 1992 at $17 per share. The company only had 165 stores at the time.
Since then, Starbucks has split its stock 2-for-1 on six different occasions. Original investments in the thousands would be worth millions today. And you’d be collecting massive dividends in the process.
Starbucks current quarterly dividend is $0.45 per share. This may not seem like a huge payout, but it’s as good as it gets for coffee lovers.
Starbucks stock is trading above $105 a share after the coronavirus pandemic took its toll in 2020. The stock price fell as low $50 when the virus caused shutdowns across the country. Yet, Starbucks quickly regained its already growing momentum on the market and finished out the year with new highs.
Investing in Growth Stocks
Growth stocks are intriguing for investors who are looking to build a foundation for their portfolio. And Starbucks may be a great place to start.
However, it’s important to do your research and determine if a stock is right for your investment. Having a portfolio that balances risks and rewards can go a long way in your investing journey. In addition, you must re-evaluate your investment goals as you get older and your financial outlook changes.
This is imperative to becoming a successful investor. And you need all the resources you can get. For the latest stock tips and picks, sign up for the Trade of the Day e-letter below. This daily newsletter gives readers expert stock analysis, trends and forecasts that may help you find the next big marker movers.
Who would have thought a simple coffee café could turn into a global brand and worldwide coffeehouse chain? Those who did have surely reaped the rewards. Therefore, you may want to keep your eyes on Starbucks stock as the company continues to ramp up its community involvement and global partnerships.
About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.