Is investing is coke a good idea? (2024)

Is investing is co*ke a good idea?

There are no concerns about this business ever running into financial woes. That's because Coca-Cola is incredibly profitable. In the third quarter, its operating margin was a superb 27.4%. And the business generated $7.9 billion of free cash flow through the first nine months of 2023.

Is it good to invest in co*ke?

Deciding on Coca-Cola stock

And Coca-Cola's dividend is a compelling reason to buy and hold shares. The company has increased its dividend annually for an impressive 61 consecutive years, and possesses a solid yield of 3% at the time of this writing.

What if I invested $1,000 in Coca-Cola 10 years ago?

If you invested in the company 10 years ago, that decision could have paid off. According to CNBC calculations, a $1,000 investment in Coca-Cola in 2009 would be worth more than $2,800 as of Feb. 15, 2019.

Will Coca-Cola be successful in the future?

The company is setting itself up for future success.

Coca-Cola (KO 0.08%) the brand is synonymous with the red cans of its popular namesake beverage. The Coca-Cola name has incredible brand power, and it generates tons of cash to run the company and return some to shareholders.

Is Coca-Cola dividend safe?

Indeed, Coca-Cola has an exceptional track record of consistently increasing its dividend for the past 62 years. Its dividend has increased from 40 cents per share in 2002 to $1.76 per share in 2022, with an annual compounded growth rate of nearly 7.67%.

What are the cons of investing in Coca-Cola?

Con: It's Expensive

While KO stock does have the size and brand recognition to command respect, the firm's most recent performance and expectations for the future don't justify its current price tag. KO's price-earnings ratio is a staggering 42.4. That's nearly double PepsiCo's 23.5 P/E ratio.

Is co*ke a safe stock?

Coca-Cola is a safe stock for dividend investors and with $15 billion in cash and top line revenue of $45 billion dollars, the company has plenty of resources to grow.

What is Coca-Cola 10 year average return?

Ten Year Stock Price Total Return for Coca-Cola is calculated as follows: Last Close Price [ 61.20 ] / Adj Prior Close Price [ 27.30 ] (-) 1 (=) Total Return [ 124.2% ] Prior price dividend adjustment factor is 0.73.

Is co*ke a good long term stock?

Coca-Cola provides security, value, and passive income, and it's about as reliable as a dividend stock can be. Those are worthwhile qualities. It also works as a hedge in challenging times, as illustrated by its market-beating performance last year.

How much is 400 million shares of Coca-Cola worth?

Berkshire Hathaway now owns 400 million shares of Coca-Cola stock valued at a whopping $22 billion or about 8% of the company.

Why is Coca-Cola stock so low?

It was the drop in profit that Coca-Cola experienced during the 4th quarter. The company's net income dropped substantially from the same period last year when it reported $2.41 billion (56 cents a share). This year, net income was just $2.03 billion (47 cents a share). This was a 16% drop – and is cause for concern.

Is Coca-Cola growing or declining?

Trademark Coca-Cola® grew 2%, primarily driven by growth in Latin America and Asia Pacific. Coca-Cola Zero Sugar grew 3%, reflecting growth in Latin America and North America. Sparkling flavors grew 1%, primarily driven by growth in Latin America, Asia Pacific and North America.

Is Coca-Cola still profitable?

CocaCola gross profit for the twelve months ending December 31, 2023 was $27.234B, a 8.92% increase year-over-year. CocaCola annual gross profit for 2023 was $27.234B, a 8.92% increase from 2022. CocaCola annual gross profit for 2022 was $25.004B, a 7.32% increase from 2021.

How much does Coca-Cola pay Warren Buffett in dividends?

Berkshire currently owns 400 million shares of Coca-Cola. This means that on an annualized basis, Warren Buffett's company generates $736 million in dividend income from the beverage giant. That is a huge passive income stream that likely explains why Buffett isn't exiting the position.

What is the safest dividend stock?

7 Dividend Stocks to Buy and Hold Forever
StockImplied upside from Feb. 7 closeForward dividend yield
JPMorgan Chase & Co. (ticker: JPM)30%2.4%
Procter & Gamble Co. (PG)9.4%2.4%
Home Depot Inc. (HD)3.4%2.3%
AbbVie Inc. (ABBV)12.6%3.5%
3 more rows

Does co*ke pay monthly dividends?

The Coca-Cola Company ( KO ) pays dividends on a quarterly basis. The next dividend payment is planned on April 1, 2024 . The Coca-Cola Company ( KO ) has increased its dividends for 52 consecutive years.

Should you invest in co*ke or Pepsi?

Margin preferences

co*ke easily wins the matchup when it comes to earnings. Its massive global sales footprint allows for unusually high profits, with operating margin landing at 28% of sales. That's roughly double PepsiCo's level.

Is co*ke over or undervalued?

What is the Intrinsic Value of one KO stock? The intrinsic value of one KO stock under the Base Case scenario is 51.83 USD. Compared to the current market price of 61.29 USD, Coca-Cola Co is Overvalued by 15%.

Why is Coca-Cola so profitable?

Purchasing power: As one of the largest companies in the world, Coca-Cola has significant purchasing power, which allows it to negotiate lower prices for raw materials, packaging, and other inputs. This can result in lower production costs and higher profits. This is also known as monopsony power.

Who owns most of Coca-Cola stock?

The ownership structure of Coca-Cola (KO) stock is a mix of institutional, retail and individual investors. Approximately 55.97% of the company's stock is owned by Institutional Investors, 5.81% is owned by Insiders and 38.22% is owned by Public Companies and Individual Investors.

Who owns a lot of co*ke stock?

Largest shareholders include Berkshire Hathaway Inc, Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Jpmorgan Chase & Co, Geode Capital Management, Llc, Morgan Stanley, and Fmr Llc .

Who invest in Coca-Cola?

Top Institutional Holders
HolderSharesDate Reported
Berkshire Hathaway, Inc400,000,000Dec 30, 2023
Vanguard Group Inc370,744,512Dec 30, 2023
Blackrock Inc.313,234,956Dec 30, 2023
State Street Corporation171,314,966Dec 30, 2023
6 more rows

What will Coca-Cola be worth in 2030?

Long-Term Coca-Cola Consolidated Stock Price Predictions
YearPredictionChange
2027$ 1,982.49143.66%
2028$ 2,667.72227.88%
2029$ 3,589.79341.21%
2030$ 4,830.55493.70%
2 more rows

What is the future value of Coca-Cola?

As of 2024-02-11, the Intrinsic Value of Coca-Cola Co (KO) is 65.63 USD. This Coca-Cola valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 59.56 USD, the upside of Coca-Cola Co is 10.2%. The range of the Intrinsic Value is 44.36 - 122.84 USD.

What is the fair value of Coca-Cola stock?

As of 2024-02-24, the Fair Value of Coca-Cola Co (KO) is 30.51 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 61.2 USD, the upside of Coca-Cola Co is -50.2%.

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