Buy Starbucks shares - how to invest in Starbucks shares in South Africa
          

It is impossible to imagine today's world without Internet technology. Modern innovation processes have penetrated the world of commerce, services and solutions, education and ordinary communication.

Investments are not left out either. Now that you have access to the World Wide Web, you can discover the wide world of stock trading, get into the nitty-gritty of the stock market and be prepared as an investor from the comfort of your home. Even if you live in a small town in South Africa, all you need is the Internet and a minimum starting amount of a few dollars.

Today we will look at how to invest in Starbucks shares in South Africa.

Starbucks is the largest international chain of fast-food restaurants owned by the US-based Starbucks Corporation, headquartered in Seattle, Washington. The coffee shops are located in 55 countries and had a total of 17,009 locations as of November 2011. Of these, 11,000 outlets are located in the United States, more than 1,000 in Canada, 700 in the United Kingdom and 150 in Turkey.

Starbucks official website
Starbucks official website

The Starbucks restaurant chain sells mainly freshly brewed coffee, hot espresso-based beverages, hot and cold soft drinks, coffee beans, salads, sandwiches and paninis, and biscuits. Starbucks coffee shops sell mugs and cups, souvenir and gift books, recordings and movies, and grocery shops sell ice cream and specialty coffees.

Founded in Seattle on 30 March 1971, the company processed and sold coffee beans. The company grew rapidly and opened a new coffee shop every day in the 1990s. The first outlet outside the US opened in Canada in the mid-1990s and now accounts for one-third of the company's business outside the US.

Today, the organisation has a network of some 24,000 active shops in many countries around the world.

The company actively sells goods under its brands: Evolution Fresh, Seattle's Best Coffee, Ethos, La Boulange, Tazo and Teavana. The issuer generates revenue not only from the sale of merchandise, but also from the sale of rights to use its portfolio of brands.

Starbucks' long history has been a journey from a small shop to a huge business empire known around the world. These coffees are in high demand not only by American diners, but also by consumers in other countries around the world. 

The significant volume of revenues and profits makes the US issuer's papers an attractive stock market asset for many stock market participants. A large number of investment funds and other collective investment organisations are active in Starbucks shares.

Starbucks current share price
Starbucks current share price

How to invest in Starbucks shares in South Africa?

Starbucks shares began trading on the NASDAQ in the summer of 1992 under the symbol SBUX. In addition, Starbucks shares are traded on: Hamburg Stock Exchange, Frankfurt Stock Exchange, Düsseldorf Stock Exchange, Stuttgart Stock Exchange, Berlin Stock Exchange, Munich Stock Exchange, Hannover Stock Exchange and London Stock Exchange.

The issuer's shares are included in the calculation of many stock market indicators, in particular: DJ US, S&P 500, DJ Travel & Leisure, S&P 100, NASDAQ, DJ Restaurants & Bars, NASDAQ Industrial, S&P 500 Consumer Discretionary, NASDAQ 100, Dow Jones Large-Cap Growth, S&P Composite 1500 Consumer Discretionary, Mini Nasdaq 100, DJ Large-Cap, Dow Jones Travel & Leisure Titans 30, Dow Jones Sector Titans Composite, ARCA Institutional and others.

To choose a good broker, pay attention to the following points:

  • Whether the broker is accredited by known regulatory bodies to engage in brokerage activities;
  • Availability of a professional website with all necessary information;
  • Availability of comments for consultation;
  • Availability of trading requirements with a wide range of trading instruments;
  • Availability of technical indicators to analyse the evolution of stock prices;
  • Access to free educational material;
  • Speed of fulfilment of requests;
  • Availability of various withdrawal methods available.
Search for the company under the symbol SBUX
Search for the company under the symbol SBUX

From 2004 to 2010, the company did not pay dividends, but instead channelled all profits into growing its business. After 2010, Starbucks has been making quarterly dividend payments. Along with the share price, the size of the payouts is also increasing, exceeding 1.6% per year.

A popular method of investing in Starbucks is CFD (Contracts for Difference) trading, where you trade the difference in value per share between the opening and closing time of a trade. In other words, you must be able to predict the possible rise or fall in the value of a share in the market. In these cases, a profit can be made simply by correctly predicting the behaviour of the share price.

Most online platforms when choosing to trade CFDs allow you to take advantage of the "multiplier" option, through which you can increase the amount you spend according to the multiplier you select.

But be aware that trading with the multiplier, on the one hand, allows you to increase the possible profits many times over, but on the other hand, it involves a high risk of losing money.

Using the multiplier
Using the multiplier

How to buy Starbucks shares in South Africa?

To get started with online stocks, register on the online investment platform provided by the brokerage firm. Registration is quick and easy, it only takes a few minutes. Go to the website, click on the registration button, fill in all the details of the registration form with the correct email address. After that, the system will automatically send a confirmation link to the specified email, you need to confirm the email, and then you can start working on the platform.

Registration form on the platform
Registration form on the platform

To begin with, you will be offered to start working on a free demo account. The platform will automatically credit a certain amount of fictitious money to this account, so you will be able to make your first test trades without risking losing real money. Normally, the amount of play money is 10,000 (the amount may vary from programme to programme), and this amount is more than enough for practice during the initial stage. If it turns out that your practice trades have been unsuccessful and you do not have enough fictitious funds, in most cases you can reactivate them and try again.

The advantages of a demo account are difficult to overestimate. A demo account is an exact replica of a real account, the only difference is that the demo account will already contain your real funds. So with a demo account you can clearly see how the platform works: how to buy or sell shares, how to enable a particular target such as a stop-loss or multiplier, etc. In this way, you will not risk your personal funds in the same way.

Of course, you cannot withdraw money from your demo account.

Select an account to work with
Select an account to work with

To start real trading on the platform, deposit the amount into a real account. You can do this through your bank or any of the payment systems listed on the platform. The minimum amount to deposit the real account is basically $10. This allows you to start trading even without much capital.

In any situation you should always remember that trading is a risky business, so if you do not have enough experience, start with small amounts, so as not to incur significant financial losses in case of a failed transaction. Generally, you can withdraw money from your account in the same way as you can deposit it with the same payment methods or with a bank card.

Top up your account online
Top up your account online

How to invest successfully on the Internet?

Investing is a rather complex process. In order to invest effectively, creating returns rather than reducing them, it is not enough to learn how the stock market works. It is important to remember that there are a number of external factors that influence the price of a company's shares and that need to be taken into account when investing, such as the country's political scene, the country's international economic relations and financial laws, the world economy, global political trends, etc. It also makes sense to pay attention to the type of product or service the company currently produces, whether it plans to expand further or, on the contrary, whether it is going out of business. It makes sense to follow the news about companies in which you would like to invest. But at the same time, we advise you to use only trusted sources of information.

So, to summarise all of the above, let's highlight where to start investing:

  • Find a decent online broker;
  • Fegister with an online investment platform;
  • Open a demo account;
  • Read the online educational material;
  • Try trading with a free online account;
  • Follow the country's political and economic news;
  • Follow world news to understand global trends.

Like any activity in general, investing requires a comprehensive passion for the procedure. If you want to become a successful investor, you must make it your daily habit to study market trends.

Analysts say rising household incomes and the increasing popularity of coffee and coffee-based beverages in countries where the company is active will have a good impact on average bill size. This could lead to an increase in the issuer's revenues and profits, which could push the US corporation's share price up.

In the future, the company plans to do more business in China and other Southeast Asian countries.

Perhaps, after some time, the Asian market will become as profitable for Starbucks Corporation as the US market is today.

At the time of writing, Starbucks' share price stands at $111.19, up 50.22% from the same period last year. Despite significant declines in the company's turnover due to the worldwide pandemic over the past two years, the company is showing growth and good momentum. 

We believe that investing in Starbucks shares in South Africa is a promising choice. 

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