Should I invest in Coca-Cola?
Now in its 62nd year of consecutive dividend raises, Coca-Cola pays a quarterly dividend of $0.485 per share, which shakes out to an annual yield of 3%. Considering the S&P 500 yields approximately 1.3%, the beverage giant is a favorite stock for income seekers.
There's a ton of evidence that The Coca-Cola Company (NYSE: KO) is a great business. It's one of the most well-known brands worldwide. It's paid and raised a dividend for over six consecutive decades. It's one of Warren Buffett's top holdings at Berkshire Hathaway.
You would have more than doubled your money, with a total investment worth of $2,029.55. That's a 103% return, or a 7.23% annual rate of return.
The Coca-Cola Company Stock Forecast
The 16 analysts with 12-month price forecasts for KO stock have an average target of 70.25, with a low estimate of 64 and a high estimate of 75. The average target predicts an increase of 3.49% from the current stock price of 67.88.
co*ke and Pepsi are fairly similar in terms of dividend health. co*ke sports a 76% payout ratio and 2.9% yield and Pepsi holds a 73% payout ratio and 3.1% yield. The valuations are also close, but again, Pepsi stock seems cheaper at the moment with a 25.2 price-to-earnings (P/E) ratio compared to 27.2 for co*ke.
| Stock | Implied upside over July 15 close | Forward dividend yield |
|---|---|---|
| Energy Transfer LP (ticker: ET) | 9.8% | 7.8% |
| Vale SA (VALE) | 21.6% | 15.2% |
| Kenvue Inc. (KVUE) | 27.0% | 4.4% |
| Barrick Gold Corp. (GOLD) | 3.5% | 2.2% |
- ITC: Buy| Target Rs 512| Stop Loss Rs 468.
- HPCL: Buy| Target Rs 410| Stop Loss Rs 374.
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- Tata Motors: Buy| Target Rs 1040| Stop Loss Rs 1000.
- Dixon Technologies: Buy| Target Rs 11330| Stop Loss Rs 11030.
- PCBL: Buy| Target Rs 400| Stop Loss Rs 370.
Coca-Cola has a consensus rating of Moderate Buy which is based on 14 buy ratings, 6 hold ratings and 0 sell ratings. The average price target for Coca-Cola is $69.79. This is based on 20 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Coca-Cola is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Berkshire Hathaway Inc. with 9.3% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 8.6% of common stock, and BlackRock, Inc.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 69.35 | 3.68% |
| 2026 | $ 71.90 | 7.49% |
| 2027 | $ 74.54 | 11.45% |
| 2028 | $ 77.28 | 15.55% |
Is Coca-Cola a good dividend stock?
Coca-Cola (KO 0.93%) checks all the boxes of a rock-solid dividend stock. It is an industry-leading, well-known business with diversification across beverage categories and geographic markets. It is a member of the Dow Jones Industrial Average, whose 30 components act as representatives of the broader market.
co*ke is growing its top and bottom lines despite a challenging operating environment. Coca-Cola (KO -1.77%) stock blasted to an all-time high on Friday after reporting its second-quarter 2024 earnings earlier in the week. The consumer staple giant posted solid results and shared uplifting guidance.
PepsiCo has a consensus rating of Moderate Buy which is based on 9 buy ratings, 8 hold ratings and 0 sell ratings. The average price target for PepsiCo is $186.35. This is based on 17 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
The financial health and growth prospects of KO, demonstrate its potential to underperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D.
If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. That works out to a more than 70% average annual return. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. That's just 14% compounded annually.
Investing $1,000 a month for 20 years would leave you with around $687,306. The specific amount you end up with depends on your returns -- the S&P 500 has averaged 10% returns over the last 50 years. The more you invest (and the earlier), the more you can take advantage of compound growth.
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| Stock | 30-year total return | Value of initial $10,000 stake |
|---|---|---|
| Amazon.com Inc. (AMZN) | 178,141%* | $17.8 million |
| Apple Inc. (AAPL) | 96,333% | $9.6 million |
| Biogen Inc. (BIIB) | 74,990% | $7.5 million |
| Nvidia Corp. (NVDA) | 64,223%* | $6.4 million |
| Company (Ticker) | Forward P/E Ratio |
|---|---|
| TopBuild Corp. (BLD) | 18.2 |
| Citigroup, Inc. (C) | 50.8 |
| The Kraft Heinz Company (KHC) | 8.7 |
| Fidelity National Information Services, Inc. (FIS) | 18.4 |
What's the best stock to buy for beginners?
- Berkshire Hathaway Inc. (ticker: BRK.A, BRK.B)
- JPMorgan Chase & Co. (JPM)
- Johnson & Johnson (JNJ)
- Walmart Inc. (WMT)
- PepsiCo Inc. (PEP)
- Microsoft Corp. (MSFT)
- American Water Works Co. Inc. (AWK)
Coca-Cola stock price stood at $69.31
According to the latest long-term forecast, Coca-Cola price will hit $80 by the end of 2024 and then $90 by the end of 2026. Coca-Cola will rise to $95 within the year of 2027, $100 in 2028, $110 in 2029, $125 in 2030 and $150 in 2033.
“We're excited to bring back 'Share a co*ke' this year, refreshed with more names and now last names.
| Stock | Trailing Dividend Yield |
|---|---|
| Ford Motor Co. (F) | 5.6% |
| Crown Castle Inc. (CCI) | 5.7% |
| AT&T Inc. (T) | 5.8% |
| Verizon Communications Inc. (VZ) | 6.6% |
The trust's most recent 13F filing made with the SEC revealed its top investments, which are somewhat unique in that they're not your typical mega-cap tech companies. Instead, the trust owns concentrated stock positions in less heard of companies, like Coca-Cola FEMSA, which is a Mexican bottler of popular soft drinks.
