Coca-Cola Stock Fairly Priced with 2.9% Dividend Yield
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Company Strength: Coca-Cola boasts a market cap of $300 billion, ranking third among global consumer staples companies, showcasing exceptional management through its strong brand portfolio and marketing capabilities, which enhance its industry consolidation power.
- Dividend Appeal: With over sixty years of annual dividend increases, Coca-Cola offers a current dividend yield of 2.9%, significantly higher than the S&P 500's 1.1% and the average 2.7% for consumer staples, reflecting the company's commitment to shareholder returns.
- Fair Valuation: Coca-Cola's price-to-sales ratio aligns with its five-year average, while its price-to-earnings and price-to-book ratios are below their five-year averages, indicating that the current stock price is relatively fair and suitable for long-term investment.
- Sales Growth: Despite increasing consumer caution, Coca-Cola achieved a 6% organic sales growth in Q3 2025, demonstrating strong performance in a challenging market, which further enhances its investment attractiveness.
KO
$70.075+Infinity%1D
Analyst Views on KO
Wall Street analysts forecast KO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KO is 79.08 USD with a low forecast of 71.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 70.210
Low
71.00
Averages
79.08
High
85.00
Current: 70.210
Low
71.00
Averages
79.08
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
