Coca-Cola (KO) is a love it or hate it stock. Investors who bought it in the 1980s and 1990s love it and those who bought, thinking Coca-Cola would live its glory years, hate it. However, Coca-Cola can still generate solid returns today. The dividend yield is over 3% as of this writing, and Coca-Cola’s dividend safety is improving a bit. The stock was a great buy when the dividend yield was over 4%. But what about now? I outline below why investors should love Coca-Cola and a few reasons why investors should hate it. But after weighing the pros and cons, I view Coca-Cola favorably, and when the yield goes over 3%, it is time to look at the stock seriously. I view Coca-Cola as a long-term buy.
Overview of Coca-Cola
Coca-Cola is the largest non-alcoholic beverage company in the world and traces its roots back to 1886. The company makes, distributes, and markets non-alcoholic beverages, including soft drinks, water, enhanced water, sports drinks, dairy, juices, teas, coffees, and energy drinks. Coca-Cola has recently started selling alcoholic beverages with hard seltzer. The beverage giant consolidated 400 master brands to 200 master brands. The now-defunct master brands represented only about 2% of volume and 1% of revenue, roughly $330 million in sales. Coca-Cola’s major brands including Coke, Diet Coke, Sprite, Minute Maid, Fanta, Powerade, Schweppes, Dasani, Gold Peak, Honest Tea, and many others. Total revenue was $33,014 million in 202 and $36,412 million in the LTM.
Reasons to Love Coca-Cola
Dividend Yield and Dividend Growth
The first reason many investors love Coca-Cola is the dividend yield and dividend growth. Coca-Cola is a well-known Dividend King and has raised the dividend for 59 years in a row. Few other companies out of the over 6,000 on US exchanges have reached that record. Only nine companies have done better than Coca-Cola, and an additional three companies have matched Coca-Cola at 59 years of dividend growth…
Disclosure: Long KO
Please read the complete article at my profile on Seeking Alpha for Coca-Cola – Love It Or Hate It
If you would like notifications as to when my new articles are published, please sign up for my free weekly e-mail. You will receive a free spreadsheet of the Dividend Kings.
Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.