WSM - 2 Magnificent Dividend Stocks That Have Outperformed the Market Even Without Their Dividends
2023-08-31 09:33:00 ET
There are many different ways to create a diversified stock portfolio, but a solid one generally has a mix of growth and value stocks, even if it leans in one direction or the other. There should be some dividend payers in there as well, and retirees might have a stock portfolio consisting entirely of income-generating stocks. But dividend stocks have value for any investor, and not only because they provide income no matter what's happening in the market. Dividend stocks are usually reliable, established companies that you can count on to grow their sales and profits, and they anchor your holdings.
For many investors, the ideal dividend stock offers a strong yield and also presents the opportunity for stock price appreciation. That's the best of both worlds. Williams-Sonoma (NYSE: WSM) and Starbucks (NASDAQ: SBUX) have both beaten the market over many years, even without their dividends. Adding in those payouts, they've beaten the market by even higher amounts. They're both still great candidates for future outperformance and dividend growth.
There are more Starbucks stores than almost any other restaurant chain in the world, and the coffee king has found the balance between delivering customers' favorite beverages and also innovating and creating new drinks to love. It surpassed the 37,000 mark in the 2023 fiscal third quarter (ended Jul. 2), but its story is far from over, and management envisions the chain expanding to 55,000 stores by 2030.
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2 Magnificent Dividend Stocks That Have Outperformed the Market Even Without Their Dividends