why is coca cola a good stock to invest in

by Murphy Kuhn Published 3 years ago Updated 2 years ago

Coca-Cola is a Dividend King that has increased its payout for 60 consecutive years, one of the longest streaks of any public company. Investors can get a dividend yield of just under 3% at the current share price, which can either be money in your pocket or reinvested to buy more shares to earn more dividends!Mar 11, 2022

Is Coca-Cola a good investment for stocks?

The Coca-Cola Company (NYSE:KO) delivered a 7.14% return since the beginning of the year, while its 12-month returns are up by 19.43%. The stock closed at $63.44 per share on April 07, 2022. "Over the last year, we have repositioned our portfolio to navigate the course we see ahead.

Is Coke a good stock to buy 2022?

Investors are also likely to see higher cash returns over time from dividends and stock buybacks. Coke is on track to generate $12 billion in operating cash, up significantly compared to pre-COVID-19 levels. All these factors should mean solid returns for investors holding this blue-chip stock.

Is Coca-Cola a good long term stock?

Goals: Coca-Cola has a proven track record, but it's unlikely to have the dramatic returns that newer growth stocks provide. Because its performance is steadier, it tends to be a good investment for long-term investing goals rather than short-term investing or day trading.

Why is Coke stock increasing?

The total outstanding shares also increased to 4.4 billion, compared to 4.3 billion in 2018. This meant that revenue per share rose 11% to $8.94 in 2021, vs. $8.05 in 2018. With economic growth picking up pace, Coca-Cola is expected to see higher sales over the coming years.

Will Coke split again?

From a share price standpoint, there's not a lot of evidence to suggest that Coca-Cola would split its stock again, since the share price remains close to what it was at the end of last year, at just over $50 per share. However, some analysts believe that Coke may split its shares again rather soon.

Is KO a good investment now?

Coca-Cola has a current yield of 2.93%. The payout ratio is a bit above 72%, and the 5-year dividend growth rate is 3.66%. KO currently trades for $60.40 per share. The average one year price target of 14 analysts rating the company is $65.53.

Is Coca-Cola a buy or sell?

Return on Equity (or ROE) is calculated as income divided by average shareholder equity (past 12 months, including reinvested earnings)....Momentum Scorecard. More Info.Zacks RankDefinitionAnnualized Return1Strong Buy25.08%2Buy18.56%3Hold10.15%4Sell5.79%2 more rows

Why is Coke so successful?

A significant part of Coca-Cola's success is its emphasis on brand over product. Coke doesn't sell a drink in a bottle, it sells “happiness” in a bottle.

Is Coca-Cola a good dividend stock?

In fact, Coke is a Dividend Aristocrat having paid and increased its dividend for at least 25 years consecutive years. In KO's case, it has paid a dividend for 60 consecutive years, an enviable record indeed for dividend investors.

Is Coca-Cola undervalued?

Coca-Cola Co. (KO) shares are overvalued based on current multiples and the recent decline in revenue trends due to socio-demographic shifts in the soft drink market.

What is KO ex dividend date?

KO Dividend HistoryEx/EFF DATETYPECASH AMOUNT06/12/2020CASH$0.4103/13/2020CASH$0.4111/29/2019CASH$0.4009/13/2019CASH$0.4032 more rows

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