Investing in Coca-Cola shares & dividends in 2023

Skilling Writers Team
2023-03-24
- Trading
- Stocks

Is Coca-Cola stock worth keeping an eye on in 2023?

When it comes to investing in Coca Cola, the soft-drink beverage giant is well-known for having a long and successful track record of growth. The company has consistently increased its dividend payments over the last few decades and boasts a diversified portfolio of products that appeal to consumers worldwide.

coca cola history

Coca-Cola - A brief history

Fact: Coca-Cola, which was founded in Atlanta by Asa Griggs Candler in 1892, it is a component stock of the US100, S&P 500 and the Dow Jones Industrial Average (DJIA), under the ticker symbol KO, and has a market value of $260,199 million as of February 21, 2023.

About Coca Cola’s brand

Coca-Cola's strong brand equity, marketing, research and innovation help it to garner a major market share in the non-alcoholic beverage industry. The company is also making investments in healthier alternatives like coffee, sparkling water and sports drinks. The roll out of Coca-Cola Energy, Coca-Cola Plus Coffee, Powerade Ultra and Powerade Power Water are some additions on these lines. The company's portfolio includes beverage products, spanning from sodas to energy drinks.

In addition to its sparkling soft drinks, the company sells a large range of still beverages including water, enhanced water, juices and juice drinks, sports drinks, ready-to-drink teas, coffees and dairy and energy drinks. Most of the company's beverages are manufactured, sold and distributed by independent bottling partners.

Coca-Cola currently reports operating results under the following segments - Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; Bottling Investments and Corporate.

Why invest in Coca-Cola Stocks?

Investing in Coca-Cola gives investors access to a stable, international brand that is associated with reliable quality and performance.

Additionally, the company has an impressive reach across the globe, selling its products in over 200 countries and regions. As such, it is well-positioned to benefit from economic growth around the world. All these factors contribute to making Coca-Cola an attractive option for long-term investors looking for dividend income or capital appreciation potential.

Furthermore, given its size and market strength, investing in Coca-Cola can offer investors some protection during periods of stock market volatility. In summary, when it comes to choosing a long-term investment opportunity with strong potential for returns and reduced risk exposure, investing in Coca-Cola is certainly worth considering.

Another reason for buying Coca-Cola shares is its dividend. There is a good chance that attractive yields and dividends will remain over time.

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Fun Fact:

In 1987, Coca-Cola shares were added to the list of 30 stocks in the Dow Jones Industrial Average (DJIA), the index that analysts often refer to when discussing stock market performance. The Coca-Cola Company continues on the list today. The company had been listed before, between 1932 and 1935.

Since 1969, Coca-Cola has paid its shareholders dividends that increase year by year. These are important factors in truly understanding how much a share of Coca-Cola is worth.

Coca Cola Dividends

The consistent growth of Coca-Cola's dividends each year since 1963 has served as an incentive for investors to purchase the company's stock. The Aristocrats to Dividend includes Coca-Cola. Given that the dividend has climbed for more than 50 years in a row, its shares also fall under the well-known Dividend King category.

Investing in Coca-Cola with Skilling

Purchasing Coca-Cola stock is a long-term investment. This means investing in a solid company that has proven its worth and is still growing after more than a century in business. While Coca-Cola share prices are high, they are a good reflection of Coca-Cola stock's value and strength in the stock market.

If you're wondering where to trade Coca-Cola shares, the answer is Skilling! While one of the simplest ways to invest in Coca-Cola is through buying shares, CFDs (Contracts for Difference) are ideal for stock trading, as with a minimum investment it is possible to multiply the benefits. However, it is important to always take into account the risk and the possibility of equally great loss.

Simple steps to trade Coca-Cola with Skilling:

Signup or log in: You can do this using you Skilling trading account credentials
Choose: From one of our award-winning platforms: Skilling Trader, cTrader or MT4
Select: Market Watch tab or equivalent and type Coca-cola in the search bar
Trade: After selecting the stock, click on buy or sell, depending on where you think the market will move

Coca Cola stock trading information

Symbol : #KO
Trading Hours: 9:30 AM to 4 PM EST
Currency : USD
Country : United States
Exchange : NYSE
Leverage : 5:1

If you are still unsure about trading the real markets, try a free demo account first. Here, you can practise trading under real and live market conditions, without putting any of your real funds at risk.

Coca-Cola vs PepsiCo.?

Coca-Cola's main rival is PepsiCo Inc., another multinational producer of soft drinks. Pepsi, Sunny Delight, Gatorade, Lay's, or Starbucks are some of its most well-known brands. It ranks as the fourth-largest food corporation globally. The recipe was developed by chemist Caleb D. Bradham, and as a result, its history currently mirrors that of its formidable rival. There are 195 countries where Pepsi is sold.

Pepsi Cola accounts for only 20% of the firm's revenue; the other 80% comes from other foods and beverages as a result of the corporation expanding its product line, diversifying faster than Coca-Cola, and adapting to the fad for healthy eating.

What factor should investors consider when choosing between Coca-Cola and Pepsi stock: the stock's yield or the dividend?

Both businesses could be a part of the same portfolio. Trends in favour of healthy eating will affect the direction of the food business. Since sugar-filled soft drinks are not widely consumed, both businesses had to alter their approach. In terms of its light and sugar-free goods, Coca-Cola is in front of Pepsi.

However, the purchase of Lays by Pepsi increased its market share. The conflict between Pepsi and Coca-Cola regarding soft drinks seems to be over.

FAQs

How often does Coca-Cola pay dividends?: Coca-Cola distributes dividends quarterly (every three months). Coca-Cola paid a dividend of $0.44 per share every three months in 2022.
What is the price of a Coca-Cola share?: The value of the company's shares has increased dramatically since the first issue. In 1919, a common share cost $40. And if every payout had been reinvested, it would now be worth more than $10 million. When adjusted for inflation, this indicates a rise in value of 10.7% each year. Purchasing Coca-Cola stock today might be worth more than $59 (as of March 2023).
What makes Coca-Cola unique?: One of the most well-known brands in the world today, The Coca-Cola Company has been traded on the stock market for more than a century. Its history extends back to 1886, and its stock market career has been as valuable as its cultural legacies. This is what sets it apart and makes investing in Coca-Cola becoming a part of an enormous legacy. The largest non-alcoholic beverage corporation in the world, Coca Cola also owns some of the other most well-known beverage brands in the world in addition to the globally renowned Coca-Cola brand.
Who should invest in Coca Cola?: Coca-Cola shares can be an option for a long-term investor looking to build a passive income stream because they are assured to pay out increasing dividends regardless of market conditions.
What affects Coca-Cola’s share price?: Coca-Cola's access to water and other resources in Latin America has a significant impact on the company's share price. This means that disruption or lack of access to these resources can have severe repercussions. For example, if the company is unable to source water from Latin America due to lack of availability or regulations, its production costs can rise significantly and in turn, affect its share price. Large-scale environmental disasters such as droughts and floods can also increase Coca-Cola's cost of production and ultimately bring down their stock prices. In order to protect their share price, the company must ensure a reliable and sustainable source of water in Latin America, and continue to find ways to mitigate the risk of water scarcity to ensure its share price remains stable.