Last Updated: January 10, 2022
As a producer, retailer, and marketer of some of the iconic non-alcoholic beverages, the Coca-Cola Company is one of the most recognized corporations in the world. It all started in 1886 with a flavored syrup, and now every investor is looking for the right time to invest in the company’s stocks.
If you are wondering how to buy Coca-Cola stock and expand your portfolio, you are in the right place. This article covers all the necessary info about the company that will help you decide if investing in it is right for you.
About the Company
Coca-Cola was founded in 1889 in Atlanta by Asa Griggs Candler. He bought the secret formula and brand, and moved the company in the direction it’s in today. It’s a publicly listed company owned by thousands of stockholders and investors around the globe. The largest shareholder is Warren Buffett, one of the most successful businessmen in the world.
Coca-Cola stock shares have expanded over the last century. Since its IPO in 1919, Coca-Cola has been a publicly traded company, listed under the ticker symbol “KO” on the New York Stock Exchange. The exciting information is that investing in one $40 share during the IPO time would now be worth nearly $400,000.
The Coca-Cola Company is a beverage corporation offering up to 500 brands in more than 200 countries and regions. With a wide range of sparkling soft drinks, enhanced water, sports drinks, tea, coffee, and energy drinks, the Coca-Cola company found its way to the beverage industry’s top.
Some of the products that the company owns are: Coca-Cola (Diet, Zero, Flavored), Sprite, Fanta (Orange, Zero, Grape, Pineapple), and Dasani purified water. In January 2019, Coca-Cola expanded its coffee platform by acquiring Costa Coffee, which made buying Coca-Cola stock more attractive to investors.
Should you buy Coca-Cola stock?
In 2021, the Coca-Cola Company started with a hedge fund interest score of 69.3, which is significantly above average. These stocks gained 17.2% in June 2021 and beat the market by 3.3 percentage points.
The above information is an encouraging signal for everyone who wondered whether or how to invest in Coca-Cola stock. However, there are a couple of things to consider before you make a purchase. Possible value loss or online scams are always a risk, but they need to be weighed against the importance of diversifying your portfolio.
A corporation with 500 brands and more than 700,000 people involved had to deal with some challenges during the coronavirus pandemic. The recent decline in revenue trends due to socio-demographic shifts in the soft drink market slightly affects the company’s income. However, timely adjustments to the consumers’ lifestyle during the pandemic, and the company’s resilience to the crises during history, will work in its favor.
Coca-Cola stock performance
The Coca-Cola company’s net generating revenue and income have fluctuated over the past decade. The financial figures hit a peak in 2020 with a stock price of $60.13 and a net worth of $257.97 billion. The highest revenue was in 2019 at $37.26 billion. The share price in September 2021 was $53.89, while revenue is climbing closer to the pre-pandemic high with $36.41 billion. The market cap reached $232.62 billion.
In the second quarter of 2021, net sales increased 17% compared to the same quarter of 2020. The income from operations is $121 million, which is $38 million or 45% higher than 2020 for the same quarter. We might be witnessing more solid earnings reports from the Coca-Cola company.
Experts consider Coca-cola stock price modestly overvalued based on the current and past multiples. Focusing on the past business growth and analyst estimates of future business performance, the company could be worth roughly $62 a share over the next 12 months, about 15.05% percent higher than its current price of around $53.89.
The 52-week period performance number is +1.68 (+3.12%) for the period since September 2020. The average Coca-cola stock price target is $62.101. The average Free Cash Flow per Share Growth Rate in 2020 was 65.50% per year.
Coca-Cola stockholders have profited from high returns, if not the highest in Wall Street history. Coke’s 2% dividend hike in February 2021 took its annual payout to $1.68 per share. Those who bought the stock will receive a Coca-Cola stock yield of 3.1%, twice as high as the current S&P 500 medium yield of approximately 1.4%.
It’s never simple to forecast business performance, even more with the global pandemic raging. Still, a diversified portfolio is the best choice if you want to reduce potential losses in a market or minimize the damage to your long-term investments.
The company has continuously shown steady growth over the years. As a result, the company’s stock can be an attractive investment opportunity if you’re looking to diversify your portfolio.
However, before you buy Coca-Cola stock, make sure it makes sense in your portfolio and whether you have other stocks in this industry.
How to buy Coca-Cola stock
You can sell or buy Coca-Cola shares through the NYSE stock exchange or other online trading accounts. However, not all platforms will give you access to the company’s stocks. Opening an account at trading platforms and online brokers is similar to opening a regular bank account and might come with a particular requirement that limits access to some investors. Additionally, they can be expensive.
When investing in Coca-Cola stock, you have to take into account fees that vary depending on the broker you chose. The commission fee can depend on the purchased vol0ume or can be a flat fee per trade. For example, 0.1% of €10,000, $5/trade or $0.005/share.
Once you open the account, you can store shares and have access to Coca-Cola stock growth online. By depositing cash to your broker, you can start to build your portfolio and trade with shares.
No one can deny the convenience of purchasing shares, diversifying your portfolio online, and accessing it at any time. Still, you should look out for legit brokerage firms to avoid becoming victims of an online scam.
Will the company be adaptive and flexible enough to answer changing consumer habits, new shopping behavior, and the need for online sales of beverages and food? Probably yes. Still, we cannot ignore that the current pandemic has already affected the beverage industry and Coca-Cola stock growth. It will take some time for even big corporations to accommodate the new consumer needs and grow revenue.
What makes Coca-Cola unique is that its products have global recognition and are sold almost everywhere. With that in mind, it’s unlikely that its shares would ever stop being of interest to beginners or experienced investors. The global popularity of Coca-Cola beverages makes the company’s shares valuable and continually relevant on the stock market. Therefore, the future is bright for the company.
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Coca-Cola’s ticker symbol is KO, and it is listed and traded on the New York Stock Exchange under that name.
Yes, Coca-Cola does pay out a dividend. It even raised the payout during 2020 despite an 11% drop in sales.
The total dividend payments in 2020 show that Coca-Cola has a trailing yield of around 3.0%. The total annual dividend for 2021 is $1.68, which is an increase compared to $1.64 in 2020.
Coca-Cola stock is usually a strong buy and it’s even been called an investor’s dream. The price has more than doubled in the last ten years. Consistent interest payout and the company’s stability make Coca-Cola stand out as an excellent opportunity for long-term value-oriented investors.
Coca-Cola shares are an excellent choice to buy whether you are a beginner or you already have a diverse portfolio. Beginners still unsure how to buy Coca-Cola stock, how much, and when to sell it might want to make use of trading platforms.