Coca-Cola was the world’s most valuable non-alcoholic beverage in 2022. According to the company’s website, it has approximately 950 production facilities worldwide and about 200 bottling partners around the globe. The number of Coca-Cola bottlers exploded to over 1,200 plants by 1920. CEO James Quincey also said Coca-Cola’s “consumer elasticities in core categories have continued to hold up well,” which suggests it still has plenty of room to leverage brand appeal to raise its prices. But as for inflation, Coca-Cola has been largely offsetting that pressure by raising its prices.

  • The beverage maker’s revenue rose 10% year-over-year to $11.1 billion, beating analysts’ estimates by $600 million, as its organic revenue jumped 16%.
  • Here’s what you need to know about investing in this immensely profitable small-box discount supermarket.
  • Since 2020 the service industry has steadily recovered from its covid-induced losses.
  • An item that cost $100 in 1919 would cost approximately $1,500 today, according to data from the U.S.

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He fervently advised residents to invest, going so far as to underwrite bank loans backed by Coca-Cola stock. Even when shares plummeted by 50% due to a dispute with the sugar industry, Munroe’s confidence in the beverage company did not waver. His resilience would soon be tested further with the onset of the Great Depression.

The first glass of Coca-Cola was sold in downtown Atlanta in 1886, and a decade later, the company arrived in Canada, setting up a small factory in downtown Toronto. The investing giant has held on to Coca-Cola stock for decades, with more than 400 million shares on his books by 2023. In marketing parlance, Coca-Cola’s iconic name and global reach created a “moat” around its core soft drink product. A successful brand builds the name recognition, the distributor network, and the retail relationships that protect it from encroachment by competitors.

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Just as investing in a then-startup like Coca-Cola offered immense potential, today’s startups present similar opportunities for visionary investors. A key to longevity for any business is constant innovation and non-complacency, and Coca-Cola has been on the right side of both. 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.

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  • To avoid scams, investors need to know what their risk tolerance is and invest no more than the amount of money they are willing to lose.
  • The company spent $6.8 billion on dividends in 2019, fueled by $9.4 billion in free cash flows.
  • While investing in stocks can be appealing for some investors, investing in a single company—even one as established as Coca-Cola—can be risky.
  • Coca-Cola has risen to global prominence and is the largest nonalcoholic beverage company in the world.

Its 400 million shares also make it Coca-Cola’s largest single shareholder. When purchasing shares of stock, consider diversifying into multiple investments simultaneously. After you’ve decided buying the stock is right for you, you’ll need to know where to start looking to invest in the company. If you’re considering buying shares in the company, it’s important to consider what lies ahead. I would also consider conducting your own stock research and using the top stock research apps to vet any investments recommended by these services.

How to Buy Coca-Cola Shares in South Africa, India and UK

Its sheer size also hindered any attempts at active management and reduced the number of opportunities he could consider that would have a meaningful impact on the portfolio’s performance. 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. Consider reviewing the following tips to reduce the risk in stock trading for your portfolio. If you want to buy shares of Coca-Cola in South Africa, India and the UK without using CFDs, you can use a Firstrade account. In thinly traded securities with large bid-ask spreads, this can result in a fairly sizable difference between what you see the stock trading for and what you actually pay.

Fees For Investing in Coca-Cola Stock

If someone tells you everything is perfect, they’re probably trying to sell you something that doesn’t work. Like every other business on the planet, Coca-Cola also faces significant challenges today. The Coca-Cola position Buffett has left unchanged since 1994 generated $704 million in dividend payouts last year. That’s an effective yield of 54%, proving the power of playing the long game with Dividend Kings. The Coca-Cola Company’s EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $13.8 billion. However, it’s sensible to consider The Coca-Cola Company’s PEG ratio in relation to those of similar companies.

The risk involved with investing in stocks is not just related to the price of shares. Investors also need to be on guard against scams that may come their way during this time. Like most people, you’ve probably imagined buying shares of a company that grows in value and makes you enough money to retire early and live a financially secure life. Coca-Cola stock might have been one of your top choices when it comes to buying shares in a growth company. Coca-Cola organic revenue, or sales from existing products, increased 11% year over year in the second quarter of 2023. Performance has heated up since it restructured in the wake of the pandemic and increased prices to battle inflation.

Partnerships are not a recommendation for you to invest with any one company. Coca-Cola’s dividend is one of its main selling points for investors, but a high dividend by itself isn’t enough. The dividend needs to be sustainable, and Coca-Cola checks that box. Perhaps more significant than Coca-Cola’s fxchoice review current dividend is its emphasis on increasing it yearly. Coca-Cola has increased its yearly dividend for 61 straight years — the 10th longest streak in the U.S. stock market. Coca-Cola’s current quarterly dividend is $0.46 per share, with a trailing 12-month dividend yield of around 3.3%.

Step 5: Review your Coca Cola Company position regularly

Coca-Cola’s (KO 0.15%) stock barely budged after the company’s recent operating update. The beverage giant this week listed new challenges that weren’t obvious in its last earnings report, including accelerating inflation, geopolitical conflict, and new COVID-19 shutdowns. The Coca-Cola Company is a publicly interactive brokers forex review listed company, meaning there is not one sole owner, but rather the company is ‘owned’ by thousands of shareholders and investors around the world. If you need to sell your shares you can do so by entering Coca-Cola’s ticker symbol in your trading platform, along with the amount you want to sell.

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Still, it has delivered organic revenue growth of 7% on average over the past five years, with comparable earnings-per-share growth of 6% and average growth in free cash flow of 14%. 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.

The well-known beverage company could be bigger and better.

That diversification and reinvention enabled Coca-Cola to consistently grow its organic sales while generating plenty of cash for dividends and buybacks. As for the stock itself, Coca-Cola is trading at the perfectly reasonable valuation ratios of 22x earnings and 6x sales. These metrics are a stone’s throw away from google java style guide their 10-year averages, on the lower side. So I’m not looking at a no-brainer buy signal on an undervalued stock here but, instead, a comfortable entry point for a long-term investment. Just don’t expect any quick fireworks or a rapid rebound — Coca-Cola’s stock is neither a bargain nor a ripoff at these prices.

According to data from S&P Global Market Intelligence, shares of Coca-Cola rose 6.3% over the first six months of 2022. After this summary of how to buy stock online, you should have a clear sense of how to proceed buying this income generating asset. You’ll want to make sure your money is safe on Webull, M1 Finance or any of the other investing apps listed above. Some brokers also have extensive processes or procedures they must follow for risk compliance, regulations or other reasons.

If that sounds like the kind of firm you’d invest in, you’re in luck. All these factors should mean solid returns for investors holding this blue-chip stock. Coke’s business is sensitive to changes in economic growth rates, of course. But its latest operating update demonstrates it can still generate industry-leading sales and profits even as selling conditions worsen.