Should You Invest in Coca-Cola Stocks?

If you haven’t heard of Coca-Cola before, you should know that this company was founded in 1892. Although it is best known for its Coca-Cola soda, this multinational corporation produces other alcoholic and non-alcoholic beverages, as well as syrups and concentrates. Its stock price has been rising steadily over the past year, and you may want to consider investing in this company.

Coca-Cola is a defensive stock that pays quarterly dividends. These dividends have been increasing steadily for 57 years, representing a 3.22% yield. The company makes its money by selling syrup concentrates, which are turned into soft drinks when mixed with carbonated water. It is a defensive investment for a variety of reasons, including a steady growth in consumption.

One of the advantages of Coca-Cola stocks is that the company is one of the most stable companies in the market, and the company’s products are always in high demand. However, Coca-Cola stock quotes can fluctuate, and geopolitics or economic crises can impact the company’s stock price. Regardless of these factors, Coca-Cola stocks are a defensive investment and can generate a 10% annual return on your investment.

The company has long been a popular prospect for investors. Dividends from Coca-Cola stocks can make a huge difference to your personal finances. While the company has a proven track record of growth and profitability, the company has faced numerous challenges over the years. Nonetheless, the company has been able to withstand these challenges and continue to grow. For example, millennials are poised to become the largest consumer demographic in the future, and Coca-Cola must create a strategy to win the loyalty of this young demographic.

Coca-Cola stocks have a very high dividend payout ratio. You can calculate this ratio by dividing annual dividends by share price. Then, compare the dividend yield to the dividend yield of other companies in the same industry. If the dividend yield is too low, it may be a sign that the company is overvalued. You should also look at the company’s return on equity, which measures how much the company is able to return to its shareholders. If this ratio is high, Coca-Cola stocks may be worth considering.

Coca-Cola is one of the world’s most popular soft drink companies, selling billions of servings a day. The company’s red and white logo has become one of the most recognizable corporate symbols. It is headquartered in Atlanta, Georgia, and has more than 60 thousand employees worldwide. Its stock is listed on the New York Stock Exchange.

Coca-Cola’s stock has bottomed out at around $38 a share in March 2020, and has been trading at $54 in recent days. Despite these challenges, the company has a history of strategic acquisitions. In recent years, it has acquired Monster Beverage and Costa Coffee. Meanwhile, it has a stake in the Huiyuan Juice Group (HUJ). However, it is important to note that Coca-Cola’s balance sheet is not as robust as it used to be.