STARBUCKS EXAMPLE

Focus on stocks that grow dividends over time. Starbucks is a dividend grower.  It was the company's 10th consecutive year of dividend increases. 

$10,000 invested in Starbucks stock back in 2009 would have bought you 1,388 shares 

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Annual Dividend per share was $0.20 ($0.05 every 3 months) x 1,388 shares = $277.60 

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In 2020, annual dividend increased to $1.80 ($0.45 every 3 months) x 1,388 shares = $2,498.40

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Generally if the company keeps increasing the dividend the stock price also goes up over time. 

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Share price June 1, 2009: $7.20 

Share price December 10, 2020: $105.82

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$10,000 INVESTED IN STARBUCKS 11 YEARS AGO WOULD BE WORTH $146,878 TODAY. 

*This amount would have been much larger if you reinvested the dividends back in the stock over the years. 

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Dividends and Capital Appreciation at work