The Best Dividend Stock to Hold Forever

Photo by Alexander Mils on

The best dividend stock to hold forever is Starbucks, ticker symbol SBUX. Starbucks has a low dividend but the dividend has been growing by almost 20% for a number of years i the past. Currently they are cheap and 30 off fro their highs of almost 100. The dividend yield is 2.2%, but as I mentioned they have been increasing it a lot recently.

They have a real opportunity to expand in china as they are currently building their restaurants rapidly their. They build 600 a year, and the illness does not slow them down, as their CEO has said they plan to build around 500 despite those challenges. This could boost their sales as China is a very fast growing economy right now.

The stock price was climbing very fast before the illness, now they have had a slight detour in 2020 dropping down in share price a little. This does not affect the long term outlook on the stock. Which at the end of the day is what really matters.

My thoughts on why this is such a great long term stock is the huge potential growth. Also the compound annual growth rate of the dividend is high and this shows their dedication to increasing the dividend, while still growing the company.

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