Should I invest in Coca-Cola? (2024)

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.

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.

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.

What's the best stock to buy for beginners?

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.

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.