Investment Value of Coca-Cola and Realty Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: NASDAQ.COM
- Coca-Cola's Inflation Resistance: Despite rising input costs for aluminum and sugar, Coca-Cola successfully passed price increases to consumers, achieving a modest 2% revenue growth in 2025 while operating income surged 38% to $13.8 billion, demonstrating resilience amid economic challenges.
- Stable Dividend Returns: Coca-Cola has increased its dividend for 63 consecutive years, with a total payout of $8.8 billion in 2025 and a current yield of 2.63%, significantly higher than the S&P 500's 1.15%, providing investors with a reliable source of passive income.
- High Yield of Realty Income: Realty Income boasts an annual dividend yield of 4.86%, outperforming market averages, and has increased its payout for 32 years by acquiring single-tenant commercial properties and signing triple net leases with well-known brands, ensuring stable cash flows.
- Diverse Investment Strategies: Coca-Cola appeals to investors seeking stock price appreciation, while Realty Income caters to those prioritizing high yields and diversification, showcasing their unique strengths to meet varying investment needs.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to fall
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 80.500
Low
71.00
Averages
79.33
High
85.00
Current: 80.500
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; 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.
Hard Rock and Coca-Cola Celebrate International Women's Month
- Women Empowerment Initiative: Hard Rock International and Coca-Cola are launching the 'Women Empower' series, featuring micro-documentaries and a goal of 1,000 global events to enhance visibility and impact of women in the music industry, showcasing the company's commitment to gender equality.
- Charitable Donation: Hard Rock's charitable arm, Hard Rock Heals Foundation®, is donating $100,000 to Women in Music to support their education and empowerment initiatives, further promoting opportunities for women in the arts.
- Limited-Time Beverage Launch: Participating Hard Rock Cafes will offer a variety of limited-edition Coca-Cola drinks throughout March, inspired by regional flavors, aimed at attracting customers and enhancing brand engagement while improving guest experiences.
- Global Event Strategy: Hard Rock plans to host 1,000 women-led live music and community events worldwide, celebrating women's contributions through music and culture, thereby enhancing the brand's social responsibility and market influence.
See More
Investment Value of Coca-Cola and Realty Income
- Coca-Cola's Market Position: As a blue-chip stock with a market cap of $346 billion, Coca-Cola demonstrates its ability to create shareholder value amidst economic challenges, supported by its global brand recognition and a gross margin of 61.75%, with expectations for steady revenue growth in the future.
- Inflation Resilience: Despite rising input costs for aluminum and sugar, Coca-Cola successfully passed price increases to consumers, achieving a remarkable 38% increase in operating income to $13.8 billion in 2025, showcasing its resilience and profitability in an inflationary environment.
- High Yield of Realty Income: Realty Income boasts an annual dividend yield of 4.86%, significantly above the market average, and has increased its payout for 32 consecutive years, relying on stable cash flows from well-known brand tenants to ensure business safety and reliability.
- Tax Advantages and Investment Strategy: Although dividends from high-yield REITs are taxed as ordinary income, holding Realty Income in tax-advantaged accounts allows investors to benefit from long-term tax-free compounding, making it suitable for those seeking high yields and diversification in their investment portfolios.
See More
Investment Value of Coca-Cola and Realty Income
- Coca-Cola's Inflation Resistance: Despite rising input costs for aluminum and sugar, Coca-Cola successfully passed price increases to consumers, achieving a modest 2% revenue growth in 2025 while operating income surged 38% to $13.8 billion, demonstrating resilience amid economic challenges.
- Stable Dividend Returns: Coca-Cola has increased its dividend for 63 consecutive years, with a total payout of $8.8 billion in 2025 and a current yield of 2.63%, significantly higher than the S&P 500's 1.15%, providing investors with a reliable source of passive income.
- High Yield of Realty Income: Realty Income boasts an annual dividend yield of 4.86%, outperforming market averages, and has increased its payout for 32 years by acquiring single-tenant commercial properties and signing triple net leases with well-known brands, ensuring stable cash flows.
- Diverse Investment Strategies: Coca-Cola appeals to investors seeking stock price appreciation, while Realty Income caters to those prioritizing high yields and diversification, showcasing their unique strengths to meet varying investment needs.
See More
Berkshire's Investment Portfolio Overview Post-Buffett Retirement
- Portfolio Concentration: Berkshire Hathaway's fourth-quarter 13F filing reveals that five stocks account for 61% of its $318 billion investment portfolio, with Apple at 19.5%, indicating a highly concentrated investment strategy that may influence future decisions.
- Long-Term Holding Strategy: Coca-Cola and American Express have been long-term holdings since 1988 and 1991, respectively, yielding annual returns of 63% and 39%, reflecting the company's trust in these brands and their stable cash flows.
- Market Valuation Changes: Apple's price-to-earnings ratio has nearly tripled since Buffett's initial purchase in 2016, currently standing at 34, indicating potential overvaluation that may prompt new CEO Abel to reassess the holding strategy.
- Energy Investment Outlook: Abel's familiarity with Chevron's integrated operating model may position it as a focal point for Berkshire's future investments, given its ability to hedge against crude oil price fluctuations, highlighting potential growth opportunities in the energy sector.
See More
Warren Buffett Retires, Greg Abel Takes Over at Berkshire Hathaway
- Leadership Transition: Warren Buffett retired on December 31, 2025, passing the reins to Greg Abel, who will oversee a $318 billion investment portfolio; while Abel is unlikely to significantly alter Buffett's eight 'indefinite' holdings, his focus on value may lead to adjustments in core positions.
- Portfolio Concentration: Berkshire's fourth-quarter 13F filing reveals that nearly 61% of its invested assets are concentrated in just five stocks, indicating a high concentration that Abel must navigate to balance returns and risks effectively.
- Yield Analysis: With cost bases of $3.25 for Coca-Cola and $8.49 for American Express, the current annual yields of 63% and 39% respectively provide no logical incentive for Abel to sell these stocks, potentially leading to further accumulation instead.
- Energy Investment Potential: Having previously served as CEO of MidAmerican Energy, Abel understands energy sector dynamics and may continue to favor Chevron's integrated operating model, particularly as its pipelines and chemical plants can hedge against crude oil price fluctuations.
See More
Investment Potential of Realty Income and Coca-Cola
- Realty Income Performance: Realty Income's adjusted funds from operations (AFFO) reached $1.08 per share in Q4, with projections of $4.28 per share for 2025, indicating its stable earnings capacity and ongoing dividend payment ability, while maintaining a healthy occupancy rate of 98.9% in 2026 enhances investor confidence.
- Dividend Growth History: Realty Income has increased its dividend for 113 consecutive quarters, with expectations to reach 114 quarters in March, showcasing its strong cash flow and stable business model, attracting income-seeking investors.
- Coca-Cola's Growth Potential: As a Dividend King, Coca-Cola has raised its dividends for 64 consecutive years; despite concerns over sugary drink consumption, its robust product portfolio in the global beverage market and five consecutive years of revenue growth are expected to drive sales acceleration in the future.
- Profitability Improvement: Coca-Cola anticipates a net margin of 27.3% in 2025, marking its best performance in 15 years, combined with a 2.6% dividend yield, demonstrating strong profitability and appeal for long-term investors.
See More
Hard Rock and Coca-Cola Celebrate International Women's Month
- Women Empowerment Initiative: Hard Rock International and Coca-Cola are launching the 'Women Empower' series, featuring micro-documentaries and a goal of 1,000 global events to enhance visibility and impact of women in the music industry, showcasing the company's commitment to gender equality.
- Charitable Donation: Hard Rock's charitable arm, Hard Rock Heals Foundation®, is donating $100,000 to Women in Music to support their education and empowerment initiatives, further promoting opportunities for women in the arts.
- Limited-Time Beverage Launch: Participating Hard Rock Cafes will offer a variety of limited-edition Coca-Cola drinks throughout March, inspired by regional flavors, aimed at attracting customers and enhancing brand engagement while improving guest experiences.
- Global Event Strategy: Hard Rock plans to host 1,000 women-led live music and community events worldwide, celebrating women's contributions through music and culture, thereby enhancing the brand's social responsibility and market influence.
See More
Investment Value of Coca-Cola and Realty Income
- Coca-Cola's Market Position: As a blue-chip stock with a market cap of $346 billion, Coca-Cola demonstrates its ability to create shareholder value amidst economic challenges, supported by its global brand recognition and a gross margin of 61.75%, with expectations for steady revenue growth in the future.
- Inflation Resilience: Despite rising input costs for aluminum and sugar, Coca-Cola successfully passed price increases to consumers, achieving a remarkable 38% increase in operating income to $13.8 billion in 2025, showcasing its resilience and profitability in an inflationary environment.
- High Yield of Realty Income: Realty Income boasts an annual dividend yield of 4.86%, significantly above the market average, and has increased its payout for 32 consecutive years, relying on stable cash flows from well-known brand tenants to ensure business safety and reliability.
- Tax Advantages and Investment Strategy: Although dividends from high-yield REITs are taxed as ordinary income, holding Realty Income in tax-advantaged accounts allows investors to benefit from long-term tax-free compounding, making it suitable for those seeking high yields and diversification in their investment portfolios.
See More
Investment Value of Coca-Cola and Realty Income
- Coca-Cola's Inflation Resistance: Despite rising input costs for aluminum and sugar, Coca-Cola successfully passed price increases to consumers, achieving a modest 2% revenue growth in 2025 while operating income surged 38% to $13.8 billion, demonstrating resilience amid economic challenges.
- Stable Dividend Returns: Coca-Cola has increased its dividend for 63 consecutive years, with a total payout of $8.8 billion in 2025 and a current yield of 2.63%, significantly higher than the S&P 500's 1.15%, providing investors with a reliable source of passive income.
- High Yield of Realty Income: Realty Income boasts an annual dividend yield of 4.86%, outperforming market averages, and has increased its payout for 32 years by acquiring single-tenant commercial properties and signing triple net leases with well-known brands, ensuring stable cash flows.
- Diverse Investment Strategies: Coca-Cola appeals to investors seeking stock price appreciation, while Realty Income caters to those prioritizing high yields and diversification, showcasing their unique strengths to meet varying investment needs.
See More
Berkshire's Investment Portfolio Overview Post-Buffett Retirement
- Portfolio Concentration: Berkshire Hathaway's fourth-quarter 13F filing reveals that five stocks account for 61% of its $318 billion investment portfolio, with Apple at 19.5%, indicating a highly concentrated investment strategy that may influence future decisions.
- Long-Term Holding Strategy: Coca-Cola and American Express have been long-term holdings since 1988 and 1991, respectively, yielding annual returns of 63% and 39%, reflecting the company's trust in these brands and their stable cash flows.
- Market Valuation Changes: Apple's price-to-earnings ratio has nearly tripled since Buffett's initial purchase in 2016, currently standing at 34, indicating potential overvaluation that may prompt new CEO Abel to reassess the holding strategy.
- Energy Investment Outlook: Abel's familiarity with Chevron's integrated operating model may position it as a focal point for Berkshire's future investments, given its ability to hedge against crude oil price fluctuations, highlighting potential growth opportunities in the energy sector.
See More
Warren Buffett Retires, Greg Abel Takes Over at Berkshire Hathaway
- Leadership Transition: Warren Buffett retired on December 31, 2025, passing the reins to Greg Abel, who will oversee a $318 billion investment portfolio; while Abel is unlikely to significantly alter Buffett's eight 'indefinite' holdings, his focus on value may lead to adjustments in core positions.
- Portfolio Concentration: Berkshire's fourth-quarter 13F filing reveals that nearly 61% of its invested assets are concentrated in just five stocks, indicating a high concentration that Abel must navigate to balance returns and risks effectively.
- Yield Analysis: With cost bases of $3.25 for Coca-Cola and $8.49 for American Express, the current annual yields of 63% and 39% respectively provide no logical incentive for Abel to sell these stocks, potentially leading to further accumulation instead.
- Energy Investment Potential: Having previously served as CEO of MidAmerican Energy, Abel understands energy sector dynamics and may continue to favor Chevron's integrated operating model, particularly as its pipelines and chemical plants can hedge against crude oil price fluctuations.
See More
Investment Potential of Realty Income and Coca-Cola
- Realty Income Performance: Realty Income's adjusted funds from operations (AFFO) reached $1.08 per share in Q4, with projections of $4.28 per share for 2025, indicating its stable earnings capacity and ongoing dividend payment ability, while maintaining a healthy occupancy rate of 98.9% in 2026 enhances investor confidence.
- Dividend Growth History: Realty Income has increased its dividend for 113 consecutive quarters, with expectations to reach 114 quarters in March, showcasing its strong cash flow and stable business model, attracting income-seeking investors.
- Coca-Cola's Growth Potential: As a Dividend King, Coca-Cola has raised its dividends for 64 consecutive years; despite concerns over sugary drink consumption, its robust product portfolio in the global beverage market and five consecutive years of revenue growth are expected to drive sales acceleration in the future.
- Profitability Improvement: Coca-Cola anticipates a net margin of 27.3% in 2025, marking its best performance in 15 years, combined with a 2.6% dividend yield, demonstrating strong profitability and appeal for long-term investors.
See More
