Coca-Cola gained market share in all its geographical regions in 2019. Twenty million Chinese customers signed up for a new Coke and meal package. With high uptake of its products stock market myths in developing markets, Coke sales increased 5 percent to 7 percent over the last four years. Coca-Cola has only penetrated 20 percent of the developing countries.
Strong demand for Fused Tea helped the company beat revenue forecasts in 2019. The question is, does Coca-Cola have the financial strength to maintain its aggressive acquisition strategy. According to management, its acquisition war chest will be flush with cash. The company plans to generate $8 billion in cash flow through operations and capital investments this year.
The 2020 forecast is for revenues to grow 5 percent and operating income 8 percent. Over the last five years, Coca-Cola’s stock has generated an annual return of 6.8 percent versus 10.2 percent for the S&P 500. Declining revenues over this period left a bad taste in investors’ mouths. In comparison to its industry, though, the S&P Food & Beverage Select Industry Index (of which KO stock is a top 10 holding by weighting) returned a more moderate 3.4 percent over the same period. Select the Market (current price) or other price level you want to enter the market at. Enter the amount you want to trade and leverage (X1, X2, X5).
Some might wonder if it’s time to pop the tab on this stock — or maybe it’s better to keep it on ice. Coca-Cola raised its quarterly dividend payout by a penny in February. That modest increase extended the company’s uninterrupted streak of annual dividend boosts to 58 years. If you are a beneficial owner of shares, and hold your shares through a broker or brokerage account, it will be necessary to contact your broker for assistance in enrolling in electronic delivery.
Measuring volatility, betas of one imply a stock’s volatility is largely in line with the overall market. Betas greater than one mean shares are more volatile than the overall market. A beta of 0.5, therefore, means that Coca-Cola’s stock is about half as volatile as the overall market.
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Over the past several year’s Coca Cola’s stock price has shown moderate short-term volatility, fluctuating by around 10% on a month-to-month basis. Over the long term this has been somewhat steady growth stock. After slowly climbing in the $40 – $50 range for most of the 2010’s, Coca Cola has shown faster recent growth. Overall, though, this stock’s history suggests a steady stock, but not a value asset. On the other hand, you may want to own Coca-Cola without the exposure of holding individual stocks. In this case, you should seek out equity funds like ETFs or mutual funds that hold shares of KO stock.
If you want to buy stock in Coca-Cola, we recommend doing so via a regulated online broker such as eToro. The gross profit margin rose this quarter rather than retreating under the weight of higher costs on inputs, labor, and transportation. Operating profit margin increased, too, allowing adjusted earnings to jump 16%. Organic sales soared by 18% in Q1 compared to 9% in the previous quarter. That industry rebound helped, but so did Coke’s massive marketing budget, world-class distribution network, and pricing strategies.
- Diet Coke was launched in 1982, and has become the third most popular soft drink worldwide, while the launch of New Coke in 1985 was one of Coca-Cola!
- Moreover, Coke has a long-standing history of returning lots of cash profits to shareholders through dividend checks and share buybacks.
- Investors were betting that Coke would enjoy a strong growth rebound, given that its business is heavily tilted toward on-the-go drinking at places like restaurants, concerts, and sporting events.
- This means you will need to deposit money into your account (at least above the minimum opening account balance).
Most brokers rely on direct money transfers from your checking account but others will allow you to deposit money from electronic wallets like PayPal. You will need to decide for yourself if the company is a good stock choice for your individual investing situation. Consider P/E ratio, profit and loss, and news when buying stocks. Relegated to second place behind Gatorade since its introduction in 1998, Coca-Cola has several new products launching to topple the 69 percent market share of Pepsi’s Gatorade. Powerade is adding 50 percent more electrolyzers and Coke Energy is now on grocery shelves.
The beverage company’s attractive yield and steady dividend growth make its stock ideal for income-focused investors like retirees. Coca-Cola expects mergers and acquisitions ma earnings to resume their growth trajectory in 2023. The beverage giant estimated its comparable earnings per share would rise by 5% to 6%.
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It recovered post the 2008 crisis, to levels of a little less than $29 in early 2010, rising by 40% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied to levels of 1,124, rising by about 48% between March 2009 and January 2010. Riley Adams is a licensed CPA who worked at Google as a Senior Financial Analyst overseeing advertising incentive programs for the company’s largest advertising partners and agencies. Previously, he worked as a utility regulatory strategy analyst at Entergy Corporation for six years in New Orleans.
Why and how to buy Coca-Cola stocks?
If your shares are registered directly in your name with the Company’s registrar and transfer agent, Computershare Trust Company, N.A., you are considered a shareowner of record with respect to those shares. If your shares are held in a brokerage account or bank, trust, or other nominee, you are considered the “beneficial owner” of those shares. However, if you buy 1 stock, you can test how the stock price is moving, and add more stocks if needed. Adding more stocks can amplify your gains if you sell them at a higher price. To find a reliable broker that will help you invest in Coca-Cola, there are some qualities that you need to be looking out for.
It more than 200 individual brands and labels around the world and it continues to grow, with recent acquisitions including Topo Chico and the energy drink BODYARMOR. That looks like a great price to pay for a stock that’s seeing solid growth and has ample competitive advantages. Coca-Cola should continue to be a winner for investors looking for stable, dividend-paying stocks. But this consistent dividend payer has rewarded investors well in good and bad times. With dividends reinvested, Coca-Cola returned 10.8 percent, reflecting a 5-year average dividend growth rate of 4.9 percent.
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Coca-Cola might initially seem like a risky investment because soda consumption rates have been declining worldwide. It also updated its sodas with smaller serving sizes, healthier versions, and new flavors to attract new customers. Coca Cola Company is a momentum indicator forex US Consumer Defensive company, traded on the NYSE under the KO ticker. If you’d like to buy its stocks you need to find a broker that gives you access to the NYSE because that’s the main exchange it’s traded on (hang tight, we’ll get into this in a bit).
That’s relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of September 25, 2023 (21.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they’re over-valued. Coca-Cola is one of the larger companies by market capitalization. The iconic company is in several stock market indexes, including the Dow Jones Industrial Average and S&P 500 Index. As a result, index funds and exchange-traded funds (ETFs) that benchmark their returns against those indexes hold Coca-Cola, making it a widely-held stock.
To buy shares of Coca-Cola, you must have a brokerage account. If you need to open one, these are some of the best-rated brokers and trading platforms. Here’s a step-by-step guide to buying Coca-Cola stock using the five-star-rated platform Fidelity. Shares of Coca-Cola may deserve a closer look if you seek a U.S. based company that reliably pays and steadily increases dividends.
Coca-Cola reported its eight consecutive quarter of positive net income growth ending 2019, ending 2019 with a 38.6 percent increase to $8.9 billion for the year. This performance was despite a 44 percent steady slide in revenues over five years to $31.9 billion. As Coca-Cola gained share in all markets, revenues rebounded 14.9 percent to $36.6 billion. Since Coca-Cola announced its 2020 forecasts, the coronovirus has been menacing sales of its number two software drink, Diet Coke. The company expects supply interruptions of non-sugar sweeteners to slow production throughout the year. Coca-Cola has a 65 percent sparkling soft drink market share.