Coca-Cola is a great, stable investment. It has a large share of the beverage market and stable sales year over year. So if you are looking for a place to invest your money that will be low risk and show steady growth; go with Coca-Cola.
Coca-Cola remains confident about its powerful portfolio and unique system capabilities. With strong year-to-date performance, the company expects to deliver organic revenue growth at the higher end of its 2024 guidance, projecting a 10% increase.
Its adjusted operating margin for the quarter stood at a remarkable 30.7%, highlighting the company's strong profitability. This consistent performance has translated into long-term benefits for shareholders, as The Coca-Cola Company (NYSE:KO) has increased its dividend for an impressive 62 years in a row.
Stock Price Forecast
The 16 analysts with 12-month price forecasts for KO stock have an average target of 72.56, with a low estimate of 68 and a high estimate of 80. The average target predicts an increase of 17.70% from the current stock price of 61.65.
Coca-Cola stock has received a consensus rating of buy. The average rating score is A1 and is based on 36 buy ratings, 4 hold ratings, and 0 sell ratings.
Despite exceeding the Zacks Consensus Estimate for earnings and revenues, the company reported a 1% year-over-year revenue drop. This was led by volume declines across most operating segments, as gains from improved pricing were offset by reduced concentrate sales and unfavorable currency rates.
That's right: $776 million for holding 400 million shares. According to Moneywise, this massive payout comes from Coca-Cola upping its quarterly dividend to 48.5 cents per share. If you're doing the math, that's $0.485 x 4 x 400,000,000.
Coca-Cola (NYSE: KO) is often considered one of the most reliable income stocks in the market -- and for good reason. It has paid dividends for over 60 years and has never cut its dividend payment in that time.
You would have more than doubled your money, with a total investment worth of $2,029.55. That's a 103% return, or a 7.23% annual rate of return. Interestingly, despite Coke's dominance on the world stage, investing in Coke's main rival, Pepsi, 10 years ago would have given you more pop for your buck.
According to Wall Street consensus analyst estimates, Coca-Cola is projected to increase its revenue at a compound annual rate of 3.6% between 2023 and 2026. That's certainly nothing to write home about. But Coca-Cola uses a different strategy to move the needle to offset weaker unit volume growth.
Analysts See 13% Upside For Amazon Stock
The 30-year-old Amazon is among the world's most valuable companies. It is a leader in e-commerce spending and in cloud computing through its Amazon Web Services business. It is also quickly growing its advertising business into a challenger to Google (GOOGL) and Meta (META).
Slow growth
Through the last three years, revenue growth has been slowing for Coca-Cola, dropping from 17.3% in 2021 (a big number largely due to the bounce back from COVID in 2020) to just under 7% revenue growth in 2023. In its most recent quarter, the company actually reported revenue declines of 1%.
Based on analyst ratings, McDonald's's 12-month average price target is $322.73. McDonald's has 14.32% upside potential, based on the analysts' average price target. McDonald's has a consensus rating of Moderate Buy which is based on 16 buy ratings, 9 hold ratings and 0 sell ratings.
Final findings: Coca-Cola looks more solid than sweet
You could do a lot worse than Coca-Cola if you're seeking long-term stability and robust dividends, with an annual yield of 3.1% at today's prices. In that category, a single-year return of 11% would usually look fantastic.
Coke remains one of the best dividend stocks for generating stable passive income. It has 62 consecutive years of dividend raises, making it a Dividend King.
As of this writing, one share of Coca-Cola trades for about $69. But you'd own 9,216 of them. That initial $40 investment would be worth $635,904 today. Not only that, but you'd be bringing in almost $17,900 in dividend income every year.
Coca-Cola is a textbook example of a safe stock. It is a Dividend King with 62 consecutive years of dividend raises.
Today, the stock trades at just under 22 times 2024 earnings, notably below its five-year average price-to-earnings ratio of 26. That makes the stock a buy today because even if you still don't think it's a bargain, investors will probably realize most of Coca-Cola's future growth and dividends as investment returns.
Coca-Cola didn't have an upcoming stock split on the docket as of mid-2023. However, the company has completed several stock splits throughout its history.