đ„€ Coca-Cola - More than just a drink ( $KO (-0.4%) )
Coca-Cola is not just a brand - it's a global phenomenon. Whether you're in the USA, Europe, Asia or Africa, the red and white logo is omnipresent.
But what makes this share so special that it has been one of the favorites of many investors for decades?
đŸ A look at the brand
Coca-Cola is the global leader in the beverage sector and owns over 200 brands, including:
- Sprite
- Fanta
- Schweppes
- Minute Maid
- Costa Coffee
- Fuze Tea
- Powerade
With a market share of around 50 % for soft drinks in the USA and a strong presence in over 200 countries, Coca-Cola is a real heavyweight in the consumer goods industry.
đ° Why Coca-Cola is a dividend king
Coca-Cola has an impressive dividend history:
- 61 consecutive years of dividend increases.
- A current dividend yield of around 3 %coupled with solid increases.
- The company returns around 75% of its profits to shareholders - a sign of stability.
For many investors, Coca-Cola is a reliable cash flow provider, especially in times of crisis.
đ Why the share remains attractive despite the growth limit
Coca-Cola may be growing more slowly than young tech companies, but there is still potential:
1)
New markets: The company is investing heavily in emerging markets, where per capita consumption of soft drinks is expected to continue to rise.
2)
Diversification: In addition to sugary drinks, Coca-Cola is also growing in areas such as water, coffee and energy drinks through, for example, its ownership of shares in Monster Beverage ( $MNST (-0.16%) ) .
3)
Inflation protection: With strong brands, Coca-Cola can often easily pass on price increases to customers.
đ§ Thoughts on risks and the future
Critics criticize the dependence on sugary drinks, especially in times when healthy eating is becoming increasingly important.
But Coca-Cola is showing flexibility and investing more in healthier alternatives and sustainable packaging.
đ€ Why I have Coca-Cola in my portfolio
For me, Coca-Cola is a real classic and also the first stock I had in my portfolio.
The stability, the dividend yield and the global strength of the brand make it a perfect basic position in my portfolio.
It's not the most exciting stock, but definitely one that pays off in the long term.
đŁ What do you think?
Coca-Cola: A must-have stock for dividend hunters, or are there more exciting alternatives in the consumer goods sector like PepsiCo ( $PEP (+0.05%) ) or other stocks?
I'm looking forward to your opinions! đ