@QUANTIJS analyzed $KO (+1.98%) in response to my question in my new video about whether I should take profits on Coca-Cola.
Check it out
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470@QUANTIJS analyzed $KO (+1.98%) in response to my question in my new video about whether I should take profits on Coca-Cola.
Check it out
I've just made a video to react to a question from @Meneervermogen, who is one of my first subscribers on Youtube. In this video I take a closer look at Coca-Cola $KO (+1.98%) — a longtime favorite for dividend investors thanks to its legendary streak of dividend increases and solid long-term performance.
But here's the twist: despite strong operating results, KO’s free cash flow dropped sharply in 2024 — down over 50% YoY. The main culprit? A massive $6 billion deposit to the IRS related to an ongoing tax dispute over offshore profits.
💬 In the video, I break down:
- Coca-Cola’s long-term stock and dividend history
- What’s causing the sudden drop in FCF
- How this affects their ability to *pay and raise dividends* going forward
- Whether this is a red flag or just short-term turbulence
📺 [Watch the video here] https://youtu.be/0hjcv6ATsUU
🔍 For context, even after the FCF hit, the adjusted numbers excluding the IRS deposit look strong — but it raises real questions about financial flexibility if the tax situation worsens.
Would love to hear your thoughts:
- Are you still bullish on KO as a dividend play?
- Do you think this tax issue could threaten future dividend growth?
- Is this a dip worth buying, or a warning sign?
I've just made a video to react to a question from @Meneervermogen, who is one of my first subscribers on Youtube. In this video I take a closer look at Coca-Cola $KO (+1.98%) — a longtime favorite for dividend investors thanks to its legendary streak of dividend increases and solid long-term performance.
But here's the twist: despite strong operating results, KO’s free cash flow dropped sharply in 2024 — down over 50% YoY. The main culprit? A massive $6 billion deposit to the IRS related to an ongoing tax dispute over offshore profits.
💬 In the video, I break down:
- Coca-Cola’s long-term stock and dividend history
- What’s causing the sudden drop in FCF
- How this affects their ability to *pay and raise dividends* going forward
- Whether this is a red flag or just short-term turbulence
📺 [Watch the video here] https://youtu.be/0hjcv6ATsUU
🔍 For context, even after the FCF hit, the adjusted numbers excluding the IRS deposit look strong — but it raises real questions about financial flexibility if the tax situation worsens.
Would love to hear your thoughts:
- Are you still bullish on KO as a dividend play?
- Do you think this tax issue could threaten future dividend growth?
- Is this a dip worth buying, or a warning sign?
Coca-Cola ($KO (+1.98%)) showed a stable performance on the markets in March 2025. The share has recently risen, but remains below its high of the last twelve months.
📈 Current developments and challenges
🔄 Sustainability initiatives: Coca-Cola is increasingly focusing on recycling and sustainable packaging.
In several countries, including Canada and the USA, some bottles are already made from 100% recycled PET.
The "Recycle Me Again" label has been introduced in some markets, but it remains unclear whether this will happen worldwide.
🍋 Comeback of Coca-Cola LimeAfter almost two decades, Coca-Cola is bringing back the "Lime" flavor, but initially only in the UK.
A launch in other markets is being considered, but not scheduled everywhere.
⚠️ Labor disputes in Australia: In Sydney, there were strikes at a Coca-Cola plant in which employees demanded better working conditions.
However, there are no widespread reports of major production stoppages.
🛒 Partnership with CostcoAccording to reports, Coca-Cola is to return to Costco's food courts and replace Pepsi.
However, official confirmations from the companies are still pending.
💰 Challenges and opportunities for investors
Coca-Cola is facing an exciting phase: rising raw material and labor costs are weighing on profitability, but the company remains stable thanks to price adjustments and strong distribution partnerships.
The focus on sustainable packaging and healthier drinks could appeal to new customer groups in the long term.
Despite uncertainties about short-term economic developments, Coca-Cola remains a solid investment with strong brand equity and a global distribution network.
However, investors should keep an eye on consumer trends and macroeconomic factors.
🎯 Conclusion
Coca-Cola is focusing on innovation and sustainability to remain successful in a changing market.
While rising costs and changing consumer habits pose challenges, new products and partnerships could secure growth in the long term.
After the lucky hand with Steyr Motors $4X0 (+2%) (+300€) now also $DEZ (+2.68%) sold with a plus of 200€.
The portfolio is now slowly focusing on more defensive options.
To this end, the proceeds and freed-up capital were used today to $KO (+1.98%) was bought today.
I want to buy $MO (+2.05%) for it's dividend and especially because of Trump's sanctions. Yes or no? I need dividends for the month of July. (so I cant even think about $KO (+1.98%) )
Coca Cola $KO (+1.98%) or PepsiCo $PEP (+2.38%) ?
In your opinion, what is currently the way to go if you want to have one of the two stocks in your portfolio?