Starbucks and Visa have had outstanding quarterly results, and their profits are expected to rise in the coming years.
These firms pay dividends, and their solid earnings can easily maintain this recurrent income, while Visa’s move into cryptocurrencies could give some interesting growth.
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Starbucks ( NASDAQ: SBUX ) and Visa ( NYSE: V ) are two stocks that can anchor your portfolio and are likely to expand in value over time while also paying dividends.
Starbucks’ business relies around selling coffee, and while it faces stiff competition, its brand appeals to people who are ready to pay a premium for its goods. Even though there are cheaper alternatives, this permits the company to continue to thrive. It’s difficult to develop brand loyalty, which is one of the reasons Starbucks is a good long-term investment.
Despite an 11% drop in sales owing to store closures in fiscal year 2020, business has returned to normal. Sales increased by an astonishing 78 percent to $7.5 billion in the most recent quarter, which concluded on June 27. Meanwhile, the number of active members in its loyalty rewards program in the United States increased by 48 percent year over year to 24.2 million. These members, according to management, account for 51% of all spending in the company’s U.S. locations.
In a nutshell, it’s all about customer “loyalty” to the brand. Regular clients are the driving force behind the company’s success. The company also rewards faithful investors with dividends with a yield of 1.6 percent, which is the highest on this list. Starbucks should be at the top of your buy-and-hold list if you’re looking for a long-term investment.
Another well-known brand is Visa. Whether individuals spend money online or in stores, the credit card firm has a robust business.
The company, like Starbucks, saw excellent revenue growth in the most recent quarter, which concluded on June 30. When compared to the same period previous year, sales increased by 27% to $6.1 billion. The COVID-19 situation, when purchase choices were limited, influenced year-over-year comparisons, according to the business. Sales were up 7% in the first three months of 2021 compared to the same period last year.
The startup’s relationship with cryptocurrency financing company BlockFi makes it even more appealing. Many bitcoin enthusiasts will be interested in this. Of course, the risk is that these incentives will fluctuate in value, as bitcoin has gone from $64,000 to $10,000 in the last year.
Overall, Visa is another buy-and-hold investment that you can add to your portfolio for years to come. Although the company’s 0.6 percent yield is the lowest on this list, it has more than doubled its distribution in the last five years, so future dividends could be much more attractive.