📈 Coca-Cola
Investment case Coca-Cola
Coca-Cola is a beautiful company.
It’s one of the favorite stocks of Warren Buffett.
And the good news? They pay a very attractive dividend.
Coca-Cola
👔 Company name: Coca-Cola
✍️ Ticker: KO 0.00%↑
🔎 ISIN: US1912161007
📚 Type: Dividend Aristocrat
📈 Stock Price: $63
💵 Market Cap: $270 billion
📊 Average Daily Volume: $5 billion
Business Model
You probably know Coca-Cola already.
The company makes money by selling drinks. Every time someone buys a Coke or any other Coca-Cola drink, Coca-Cola makes money.
Today, Coca-Cola sells 1.9 billion servings per day (!). This means that 10,000 drinks from Coca-Cola are consumed every second of the day. That’s amazing.
What many people don’t know is that products like Minute Maid, Sprite, Fanta, and Aquarius are also from Coca-Cola.
You can see their 15 main brands here:
Geographical split
The geographical split of Coca-Cola looks as follows:
Source: Finchat
Management
James Quincey is the CEO and Chairman of Coca-Cola. He already joined the company in 1996.
John Murphy is the CFO of Coca-Cola. He has been working for the company for 37 (!) years.
In total, insiders own 42 million shares (value: $2.6 billion).
Berkshire Hathaway owns 9.3% of Coca-Cola.
Competitive advantage
Coca-Cola has a competitive advantage for sure.
The key strength of the business is its strong brand name. Coca-Cola is one of the most famous brands in the world.
When people think of soda, they often think of Coca-Cola first. This strong brand helps Coca-Cola sell more drinks and charge higher prices than its competitors.
“If you gave me $100 billion and said take away the soft drink leadership of Coca-Cola in the world, I'd give it back to you and say it can't be done.” - Warren Buffett
Dividend
Coca-Cola is a Dividend Aristocrat.
They have increased their dividend for 62 years (!) in a row.
This is amazing. It means that when you invest in Coca-Cola, you can be sure you will receive a dividend year after year.
Coca-Cola:
Dividend Yield: 3.1%
Payout Ratio: 74.7%
Frequency dividend payments: quarterly
This means that when you invest $10,000 in Coca-Cola, you’ll receive a dividend of $310 per year.
Coca-Cola’s dividend will continue to increase in the years to come.
Source: Finchat
Valuation
The cheaper we can buy a great dividend company, the better.
Coca-Cola currently trades at a forward PE of 22.0x.
Over the past 5 years, Coca-Cola’s forward PE averaged 23.8.
This indicates the company is slightly undervalued compared to its historical average.
Source: Finchat
Conclusion
That’s it for today.
Coca-Cola is an excellent Dividend Aristocrat that every dividend investor should know.
Investors receive an attractive dividend yield of 3.1%. This means that you receive $310 in cash dividends per year for every $10,000 you invest.
Source: Finchat
Used sources
Interactive Brokers: Portfolio data and executing all transactions
Finchat: Financial data