Why is Coca-Cola stock doing well?
Overall, co*ke is doing a phenomenal job balancing pricing and volumes. Its pricing power has been on full display over the last few years, which helped operating margins surge over 30% -- which is extremely high for a consumer staples company. KO Revenue (TTM) data by YCharts.
co*ke grew sales by 3% on innovation and revenue growth management initiatives, and adjusted earnings per share were up 7% on refranchising benefits and operational efficiency gains.
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.
A trio of forever stocks
Buffett often groups Coca-Cola and American Express together. He praises their dominance and how they've carved out exceptional niches in their industries, with strong moats and leadership.
Therefore, its buyback plan represented nearly 40% of the company, which is unheard of. Buying back this much stock would greatly increase earnings per share (EPS). And that's why the stock was up even though growth is quite modest.
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.
Coca-Cola (KO 2.02%) is often considered a safe blue chip stock. It owns the world's top soda brand, it generates plenty of cash, and it pays consistent dividends.
Based on short-term price targets offered by 18 analysts, the average price target for Coca-Cola comes to $69.67. The forecasts range from a low of $62.00 to a high of $76.00. The average price target represents an increase of 0.49% from the last closing price of $69.33.
Remember that Coca-Cola's superpower isn't eye-popping growth but world-class consistency. You can buy and hold the stock forever. Patient investors will get the occasional opportunity to buy shares cheaper when something shakes the market enough to knock Coca-Cola to an uncharacteristically low price.
When it comes to dividend stocks, Coca-Cola is a model of consistency, having raised its dividend for 62 consecutive years. co*ke's track record for dividend raises, 3.1% yield, and recession-resistant business model make it one of the safest passive income plays out there.
Does Coca-Cola pay dividends to Warren Buffett?
Berkshire Hathaway will receive $776 million in dividends from Coca-Cola this year based on its current dividend rate. This equates to $194 million quarterly, or about $2.13 million daily.
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, Geode Capital Management, Llc, Morgan Stanley, Fmr Llc, and Charles Schwab Investment Management ...
The higher profit margins of Coca-Cola, in comparison to PepsiCo, can make it much easier for the former to increase its earnings in the future. With hundreds of brands in its portfolio, Coca-Cola has many avenues it can go down to unlock more growth opportunities.
Intrinsic Value. The intrinsic value of one KO stock under the Base Case scenario is 57.36 USD. Compared to the current market price of 69.33 USD, Coca-Cola Co is Overvalued by 17%.
The Coca-Cola Company (KO) is the parent entity that owns the brands and formulas, whereas Coca-Cola Consolidated (co*kE) is a regional bottler and distributor. Sources: Coca-Cola Consolidated, Inc.
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.
For investors seeking stability and income, Coca-Cola remains an attractive option, and they should continue to hold the stock. However, investors should continually monitor the company's challenges, including shifting consumer preferences and revenue growth, to ensure it can sustain its increasing dividend.
Coca-Cola's net debt to EBITDA ratio of about 2.0 suggests only moderate use of debt. And its commanding EBIT of 32.3 times its interest expense, implies the debt load is as light as a peaco*ck feather.
The Company normally pays dividends four times a year, usually April 1, July 1, October 1 and December 15. Shareowners of record can elect to receive their dividend payments electronically or by check in the currency of their choice.
determined that Coca-Cola was a good company, had great value, could withstand competition, and was poised to recover. The Coca-Cola stake marked a significant change in Buffett's investing philosophy.
Is Coca-Cola a good retirement stock?
Coca-Cola (KO)
It's been a favorite for long-term investors in large part to its dividend. Coca-Cola is what's known as a Dividend Aristocrat, or a company that's raised its dividend payout to shareholders for 20 years or more.
Coca-Cola (NYSE: KO) 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.
| Holder | # of Shares | % Holding |
|---|---|---|
| Warren Buffett | 400,000,000 | 9.28% |
| Vanguard | 327,123,740 | 7.59% |
| Vanguard Index Funds | 256,614,759 | 5.95% |
| iShares | 175,658,912 | 4.08% |
The Coca‑Cola Company is a public company that trades its shares on the New York stock exchange - so we are 'owned' by our thousands of shareholders and investors around the world. Did you know? The first Coca‑Cola shares were issued in 1919 and the initial stock symbol used for The Coca‑Cola Company was CCO.
| Year | Prediction | Change |
|---|---|---|
| 2027 | $ 76.00 | 11.45% |
| 2028 | $ 78.80 | 15.55% |
| 2029 | $ 81.70 | 19.80% |
| 2030 | $ 84.70 | 24.20% |
