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The world's leading soft-drink company, Coca-Cola's fountain includes everything from Coke to Poweraid to Dasani water.
Dividends will become increasingly valued in the next few years
Its partnership with Monster shows Coke is committed to growth.
This company always seems to face adversity. When it became public in the 40s, sugar prices were on the rise. When Buffett bought it in the 80s, they were losing market share. Now, people are drinking less soda. However, the stock has been one of the most profitable over the course of the century. First, their dividend. They have managed to increase it year after yield, and now it pays out 3.1%. In a time of market downturn, this stock is as safe as any, and offers as nice of a return on the dividend alone.Second, growth. Growth does not just imply geographic growth. They covered that, which has been probably the largest catalyst for the returns this stock has offered. Moving forward, growth will primarily come via margin expansion. Their stake in Green Mountain wasn't just for fun. If their products could ever be sold to consumers the way GMCR sells coffee via K-Cups, that is a catalyst for huge margin expansion. Not to mention theres always the possibility that the US' sugar-quota gets overturned. That would result in a 10% boost in and of itself, since sugar would then be cheaper than corn syrup. Third, innovation. When a company has been around as long as Coke, they haven't survived without innovating. Look at their formula. Lets not forget how they got their name COKE. We hear now about how certain chemicals in Coke and Diet Coke aren't good for you. Whats to say they don't possibly come up with a substitute in the near future? Finally, brand loyalty. People who drink Coke products aren't gonna switch to Pepsi. Moreover, many don't really care about health risks for whatever risks since they enjoy the product. Hence, Coke isn't a fad, and will likely be around for the foreseeable future. Will this stock post market leading returns every year? No. Will this stock post solid returns year after year and be a steady, secure part of a portfolio? Absolutely.
Warren Buffet optimism.
Pure strength of brand name, products highly popular worldwide. Market leader, good management, financially very sound, and a dividend paying stock. A great value especially since the split two years ago, and now starting to climb again. I treat KO like a bank, only banks aren't as smart a place to park your money. Also, if it's good enough for Berkshire Hathaway, it's good enough for me..... I buy every two weeks, just like depositing in a bank.
Tremendous brand identification. Great business selling mostly water in your product. Outstanding consumer loyalty to the brand. Worldwide exposure and success.
KO was sniped via a sold Put option for a entry price of 35. KO is facing headwinds with consumer trends away from sweet beverages in favor of "Healthier beverages." This is contrasted against their efforts to reduce costs and increase market share in other product lines. KO is a mature transnational firm, which traditionally limits large (percentage based) swings against either up or down when compared against indices.Please note: my investment thesis does not include comparison against any indices other than my own. This is a portfolio diversification purchase of a solid wide moat dividend paying stock.
a good stock to buy, good solid dividend history
Carbonated beverages are declining
A proven Market Leader. People are attracted to the brand and the quality taste that is associated with Coca Cola.
One of Warren Buffet's all time favorites-- Coca Cola is a leader within its industry with only a sole main competitor (Pepsi). The company has an international presence and is recognized worldwide. Company has maintained a strong balance sheet over the years with healthy cash flow. Although they lag a bit behind Pepsi in terms of diversity of products offered; KO is still a strong company with further potential and opportunities to grow via possible acquisitions and expansion within the "snacking industry" in the upcoming years. KO also manages to keep aware of trends and shifts in consumer preferences.
Div. (Yield) $1.22 (3.0%)
paired trade to cancel PEP trying for a cash position
Coke and meth it makes America go round.
This is a solid stock to buy if you're okay with holding for the very long term. Its a strong company that has been very consistent and is sure to return good dividends
Health movement in U.S. is an anchor for the company. Emerging markets will improve, but overall growth will be slow.
KO will continue to plug along and do what it does better than anyone else. Tremendous brand strength and a huge host of very widely loved products. It's steady earnings and dividend growth will keep it just ahead of it's other big-cap peers.
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