Sep 122015
 

Change the way you look at the world

Albert Einstein once said the biggest decision each person has to make in life is to figure out if they live in a friendly or hostile universe. When you Change the way you look at the world, the world will change around you. 😉

If we see the world as a hostile, angry, and resentful place, then that is what we will create for ourselves in life. Some people spend their time looking for occasions to be offended. They actually want to find something to be upset about. It gives them an excuse to be patronizing and gives them an ego boost. And there’s certainly no shortage of potentially offensive material in the world if we look for them. But it’s easier to change how we think about something than to change the rest of the world.

15-09-chirchill-quote-optimist

On the other hand optimists believe the world is abundant in kindness, resources, and prosperity. The most positive people are generally open minded and not attached to the idea that the world has to constantly revolve around them.

The good news is we can choose how we look at things. If we think the financial markets are going to crash and have a negative outlook on the economy then why would we invest? Why buy a home? Why not wait for the crash before jumping in to buy? Why buy stocks when it’s all just a gamble? It simply wouldn’t make sense to invest if we actually believe we are better off to stash our money under the mattress. But if this is the way we think then we’ll likely miss out on some huge gains in the future. 🙁

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Apr 052014
 

Remember last year when I explained how investing in coffee businesses was an awesome idea? Well good news, because it looks like the daily grind is paying off 😉 One of those companies, Tim Hortons (THI), recently increased its dividends from $0.26 to $0.32 per share!

That’s a 23% dividend increase! Holy hamburgers! That’s amazing eh (゜∀゜) I only bought 20 shares of Tim Hortons at $50 per share, so all it took was just $1K of my personal savings to make this happen. Ain’t it great that we don’t need a ton of money to start investing 🙂 The first payment under the new increased rate was distributed last month. Here’s a look at what that dividend payment looked like for me.

Capturetim Tim Hortons

If you buy your doughnuts or coffee from Timmy’s I would like to say thank you on behalf of all Tim Hortons shareholders 😀 Without loyal customers like you, this company would not exist today. I look forward to receiving another $6.40 in June, and so on and so forth until the dividend is raised again! Aw yiss 😀 Collecting passive income is so exciting \(^_^)/

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Jan 242013
 

In the US alone the entire coffee industry is valued at $20 billion a year.  In the quick service business, companies like Starbucks and Tim Hortons have such loyal customers that people are willing to sacrifice a part of their busy morning lives and wait in long lineups to get their cup of joe. In the past I couldn’t help but notice how many people I see everyday walking around with Starbucks coffee cups in their hands, and I thought hey if I were Starbucks, I could have just made some money from these folks. Well it’s time I stopped missing out. It is time to take action! So earlier today I bought 20 shares each of Tim Hortons and Starbucks 😀

2013_buy_sbux_thi

Starbucks for example had $13.3 billion in sales last year, from which they made $1.4 billion in profit. Out of that profit, they paid about $535 million to shareholders as dividends.

In other words, for every $4.00 cup of coffee they sell, it costs them about $3.60 to make, so they end up keeping about 40 cents as pure, after-tax profit. Makes good sense so far right? Out of this 40 cents, about 15 cents is paid to their shareholders (like myself) in cold hard cash (goes straight into my trading account) and the remaining 25 cents of the profit is used to further invest in the business such as establishing new locations, for example.

Starbucks has about 743 million shares in total, and I now have 20. Which means I own about 0.0000027% of the entire company :0) That means every time I see someone buying a cup of coffee (let’s say for $4) I know that they just gave me 0.0000004 cents in passive income (dividends,) or if I still remember how to do my scientific notations (4×10^-7) I know that doesn’t sound like much and I can’t really buy anything with 0.0000004 cents but think about all the billions of cups of coffee Starbucks serves around the world every year 😀 It all adds up! Anyone who buys just 1 stock of Starbucks today can expect to receive at least $.72 in dividends this year. Not to mention, Starbucks has a history of increasing dividends :0)

Starbucks dividend distribution history:

  • 2012 – $0.72 per share
  • 2011 – $0.63 per share
  • 2010 – $0.57 per share
  • 2009 – $0.51 per share
  • 2008 – $0.41 per share
  • 2007 – $0.38 per share

As you can see even during the great recession this company still managed to grow their business and give increasingly more dividends back to their owners. Starbucks is currently working on plans to open up another 3,000 stores in the Americas in the next 5 years, not to mention their other plans for the Asian markets. This tells me that their dividends are safe and their business outlook is strong, otherwise why would a company choose to expand if they don’t think they can get more sales? Think about how big Starbucks will become in 2020. That’s why I’m getting into the business now and holding it for the long term.

With three big names in the coffee service business all working for me I now collect altogether $155 a year in dividends from them 😀

if coffee is your daily grind you have 3 to choose from

To all those fabulous people who are regular customers of these fine franchises. Thank you so much for your business and for mocha me very happy (^-^)Your continuous support will bring me one step closer to financial freedom.

Disclaimer: I have 40 shares of MCD, 20 shares of THI and 20 shares of SBUX 🙂 Long all the stocks.

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Random Useless Fact: Despite living in Canada and even hosting the 2010 Winter Olympics, Vancouverites are notoriously bad for driving in the snow for some reason.coffee can give you the energy to drive to work