Celgene Corporation (CELG), Halliburton Company (HAL), Starbucks Corporation (SBUX): Dividends, Schmividends

The health-conscious boom

Companies that can identify powerful trends and benefit from them are worth my investment dollars. Starbucks Corporation (NASDAQ:SBUX) does just that. Starbucks Corporation (NASDAQ:SBUX) is already wildly successful in the U.S., but the company plans to rapidly expand in Asia. The coffee shops in Japan and China consistently have lines flowing out the door. As a result, Starbucks Corporation (NASDAQ:SBUX) projects that by 2014, China will be the second- biggest market for the company, trailing the U.S. Starbucks Corporation (NASDAQ:SBUX) expects stores in excess of 1,500 throughout China by 2015. Domestically, the company has bought two new companies, which may do well in the coming years given new consumer trends.

The company speculates that the newly established health trends aren’t fads, and people are more conscious of what they eat and drink. In response, Starbucks Corporation (NASDAQ:SBUX) bought Evolution Fresh, a fresh juice manufacturer that uses special technology to produce some of the most nutritious juice on the market. To capitalize on growing demand for hot tea, Starbucks acquired Teavana, a chain of high-end tea bars. The company also boasts an 18.5% average retained earnings growth for the past four years.

Bottom line

Starbucks Corporation (NASDAQ:SBUX) and Halliburton Company (NYSE:HAL) both have dividends, but they aren’t large yields by any means. The driving factors for these companies are their growth prospects in the coming years. And while the stocks listed are riskier than most you might see in a retirement portfolio, they provide a great risk-reward ratio and offer an alternative strategy for those who can forego the big dividend paycheck.

The article Dividends, Schmividends originally appeared on Fool.com and is written by Ryan Gilbert.

Ryan Gilbert has no position in any stocks mentioned. The Motley Fool recommends Celgene, Halliburton, and Starbucks. The Motley Fool owns shares of Starbucks. Ryan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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