Coca-Cola's Dividend Growth and Investment Returns Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy KO?
Source: NASDAQ.COM
- Dividend Stability: Coca-Cola has raised its per-share dividend for 64 consecutive years, and while the increases may be modest, this consistency has made it one of the most revered dividend stocks in the market, attracting many long-term investors.
- Cash Returns: An investor who put $4,454 into 100 shares of Coca-Cola back in April 2016 has received $1,172 in cash dividends, demonstrating the company's strong capability in providing stable income.
- Stock Price Growth: Coca-Cola's stock price has risen from $44.54 in 2016 to $75.48 now, representing a 69% gain, indicating that the company not only provides stable dividends but also achieves significant capital appreciation.
- Reinvestment Potential: If dividends were reinvested, the initial investment of $4,454 would now be worth $9,872, highlighting the importance of consistently investing in quality companies, even when facing short-term challenges.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 76.280
Low
71.00
Averages
79.33
High
85.00
Current: 76.280
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, 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 Santa Clara. 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.
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- Market Value Increase: The stock price rose over 4%, adding 13.9 billion pesos (approximately $800 million) to the company's market value, reflecting investor confidence in the company's performance, especially following the implementation of the new tax policy.
- World Cup Marketing Strategy: Arca plans to enhance promotions for Coca-Cola and Coke Zero ahead of the upcoming World Cup, expecting this initiative to boost sales, particularly in the U.S. and Mexico, which together account for over 80% of the company's net sales.
- Opportunities in South America: Although South America showed weaker performance, Arca executives noted
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- Electric Truck Delivery Comparison: Volvo has deployed over 5,000 fully electric trucks globally, logging over 100 million zero-emission miles during the same period as Tesla's partnership with Pepsi, which has only a few hundred trucks primarily in pilot programs.
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- Dividend King Status: Coca-Cola has increased its dividend for 64 consecutive years, currently offering a 2.8% dividend yield supported by a 67% payout ratio, showcasing its stable cash flow and long-term investment value.
- Dollar General's Resilience: Dollar General has achieved consistent same-store sales growth over the past 36 years, with last year's sales reaching $42 billion and a same-store sales growth rate of 3%, demonstrating its strong competitive position in rural America.
- TJX Companies' Expansion Potential: TJX operates over 5,200 stores globally with annual sales exceeding $60 billion, maintaining a same-store sales growth rate of 4% to 5% despite economic challenges, with management targeting an expansion to over 7,000 stores, indicating robust growth potential.
See More
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- Strategic Advisor Role: Barry, who has served as CEO since 2019, will remain as a strategic advisor for six months post-resignation to ensure a smooth transition and provide support to Bonfig in his new role.
- Executive Turnover Trend: Best Buy's leadership change reflects a broader trend among consumer goods companies, including Coca-Cola, Procter & Gamble, and Walmart, which have also faced executive turnover due to shifting consumer environments and supply chain challenges stemming from geopolitical unrest.
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