The Coca-Cola Company
Coca-Cola (Ticker – NYSE: KO) has been a foundational dividend stock within the SIPP since 2016. Coca-Cola has been established for well over 130 years and is a well run business. Some people or investors refer to it a marketing machines as it has over 200 brands and is sold in over 200 countries around the world. You could also argue the diversification case again here, as it has a global footprint and diversified revenue streams on every continent.
On my initial research back in 2014/15 I knew that one of the worlds most famous investors Mr Warren Buffett held shares in Coca-Cola within their Berkshire Hathaway business empire. As far as I am still aware at the time of writing this article and the last time I checked they still do hold shares. KO is a popular among many institutional and mutual fund holders.
What I like about Coca-Cola and made KO part of my investment thesis:
1, Coca-Cola is one of the most recognisable brands in the world and is also one of the largest non-alcoholic beverage businesses
2, Coca-Cola has over 200 brands like Fanta, Sprite, Schweppes, not forgetting the obvious, plus other sparkling soft drinks within their portfolio of brands.
3, Coca-Cola has also spread its investments into Honest Tea & coffee namely Costa, which was a shroud move gaining global footprint in the hot beverage markets.
4, Coca-Cola also offers healthy option away from the high sugar fizzy drinks business, offering water and Nutrition categories like: Vitamin Water, Dansai, Powerade, Simply Jucies, Innocent Smoothies.
5, Coca-Cola is a dividend aristocrat paying out an income stream for over 50 years, historical dividends can be found here on their website.
The Coca-Cola average five year share price
The average Coca-Cola share price over the last five years from 11/08/2019 to 05/08/2024 sits between:
At the lowest point at the start of the pandemic in March 2022 the stock hit a low of $37.51.
To the highest point of $69.67 on the 02/08/2024.
Using my own methods of valuing the stock to repurchase additional shares, based off various metrics over a five year period and utilising any market pull back, my target price would sit between a range of $37 to $45 dollars.
Coca-Cola Dividends
The Coca-Cola Company stock is classed as a dividend king as it has paid a dividend for over 50 years. KO has been paying and increasing its dividend for 60 years.
Dividends are distributed quarterly in the months of April, July, October and December.
Dividends are paid in US dollars so income will fluctuate depending on the strength of the currency (where you are located) vs. US dollar. This is evident in the slight fluctuations shown in the file below.
Coca-Cola’s Q3 dividend was $0.485 cents or $1.94 annually (13/09/24 ex-dividend date).
Ten year history of Coca-Cola's dividends
Here is a look at how the previous dividends have grown over the past ten years:
2023 $1.84
2022 $1.76
2021 $1.68
2020 $1.64
2019 $1.60
2018 $1.56
2017 $1.48
2016 $1.40
2015 $1.32
2014 $1.22
Coca-Cola fundamentals
PE: 28.04 (03/10/2024)
Forward PE: 23.58 (03/10/2024)
Dividend Yield 2.81% (03/10/2024)
Total dividend income received over 7+ years is £1,003.11p
All dividends have been reinvested back into the portfolio.
Further income analysis can be seen in the file below:
KO
Disclaimer:
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