Shares of Coca-Cola are a buy for these four reasons, Jim Cramer says (2024)

FAQs

Are Coca-Cola shares a good buy? ›

co*ke remains an attractive long-term investment idea based on resilient topline growth, high margins, and consistent excess investment returns for more than 20 years. That said, the stock is trading at a 10% premium to our $58 fair value estimate, and we'd wait for a better entry point.

The beverage giant has a lot going for it as an investment.

Coca-Cola (KO 0.25%) shares have become cheaper in 2023 even as the broader market surged. Investors can now purchase the beverage giant for close to the $60 per share it was trading at just before the pandemic struck markets in a big way in early 2020.

(NYSE: KO) Coca Cola stock price per share is $60.31 today (as of Jun 6, 2023).

Coca-Cola has received a consensus rating of Buy.

Coca-Cola is forecasted to grow earnings and revenue by 8.2% and 5.1% per annum respectively. EPS is expected to grow by 7.9%. Return on equity is forecast to be 49.1% in 3 years.

It has been predicted that by 2023, Coca-Cola stock prices will rise to their current level. Our research indicates that the highest possible price for Coca-Cola stock by 2023 is $85.12. If sales trends continue, however, the average cost of a Coca-Cola can reach $76.05.

The 20 analysts offering 12-month price forecasts for Coca-Cola Co have a median target of 70.00, with a high estimate of 75.00 and a low estimate of 63.00. The median estimate represents a +16.69% increase from the last price of 59.99.

The Coca-Cola Company quote is equal to 60.265 USD at 2023-06-07. Based on our forecasts, a long-term increase is expected, the "KO" stock price prognosis for 2028-06-02 is 78.262 USD. With a 5-year investment, the revenue is expected to be around +29.86%. Your current $100 investment may be up to $129.86 in 2028.

Starting December 2025, compute the COLA using a chained version of the consumer price index for wage and salary workers (CPI-W). We estimate this new computation will reduce the annual COLA by about 0.3 percentage point, on average.

Will share a co*ke come back? ›

“We're excited to bring back 'Share a co*ke' this year, refreshed with more names and now last names.

Historical dividend payout and yield for CocaCola (KO) since 1964. The current TTM dividend payout for CocaCola (KO) as of June 07, 2023 is $1.84. The current dividend yield for CocaCola as of June 07, 2023 is 3.05%.

Shareowners of The Coca‑Cola Company Approve Two-for-One Stock Split. ATLANTA - The shareowners of The Coca‑Cola Company today approved a two-for-one stock split and an increase from 5.6 billion to 11.2 billion in the number of authorized shares of the Company's common stock.

Price Volatility

Stable Share Price: co*kE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week. Volatility Over Time: co*kE's weekly volatility (4%) has been stable over the past year.

Coca Cola Bottling Co has a volatility of 2.07 and is 2.23 times more volatile than NYSE Composite. 18 of all equities and portfolios are less risky than Coca Cola.

Number of shares outstanding as of June 2023 : 4,326,000,000

According to Coca-Cola's latest financial reports and stock price the company's current number of shares outstanding is 4,326,000,000. At the end of 2023 the company had 4,326,000,000 shares outstanding.

By investing 1000$ in KO 10 years ago, you would have earned a total dividend of 428$ (until 2023-04-18).

It was the drop in profit that Coca-Cola experienced during the 4th quarter. The company's net income dropped substantially from the same period last year when it reported $2.41 billion (56 cents a share). This year, net income was just $2.03 billion (47 cents a share).

According to Coca Cola's 2012 proxy statement, if you followed the scenario we just described, a single $40, 1919 share with dividends reinvested would be worth $9.8 million. So if you managed to buy 100 shares, today you would be sitting on a $980 million fortune.

How much was Coca-Cola stock when it first came out? ›

Later that year, Coca-Cola made its initial public offering (IPO) on the New York Stock Exchange (NYSE), for $40 per share.

Social Security benefits and Supplemental Security Income (SSI) payments will increase by 8.7% in 2023. This is the annual cost-of-living adjustment (COLA) required by law. The increase will begin with benefits that Social Security beneficiaries receive in January 2023.

While the 2022 COLA adjustment was 5.9%, government inflation data showed costs grew at a faster pace for much of last year. Now, the 8.7% COLA for 2023 is outpacing current inflation, with a 5.8% increase over the past 12 months for the consumer price index for urban wage earners and clerical workers, or CPI-W.

Based on the latest consumer price data, the estimated Social Security COLA for 2023 is 8.7%, according to The Senior Citizens League, a non-partisan seniors advocacy group.

Can an investor really get rich from dividends? The short answer is “yes”. With a high savings rate, robust investment returns, and a long enough time horizon, this will lead to surprising wealth in the long run. For many investors who are just starting out, this may seem like an unrealistic pipe dream.

Berkshire Hathaway is the largest shareholder of Coca-Cola, owning 9.2% of its shares. As of December 2022, the market value of Berkshire Hathaway's stake in Coca-Cola was $25.4 billion. Berkshire Hathaway owned 400 million shares in Coca-Cola and controlled 400 million shareholder votes as of December 2022.

The most recent stock split occured on August 13th, 2012. One KO share bought prior to June 1st, 1977 would equal to 96 KO shares today.

2021 reformulation

In July 2021, the Coca-Cola Company announced that another reformulation of Coca-Cola Zero Sugar would be released throughout the U.S. in August and then throughout Canada in September. The reformulation would be the same recipe that was already available in Europe and Latin America.

How many times a year does Coca Cola pay dividends? ›

There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.9. Our premium tools have predicted Coca-Cola Co with 98% accuracy.

A stock dividend is a payment to shareholders that consists of additional shares rather than cash. The distributions are paid in fractions per existing share. For example, if a company issues a stock dividend of 5%, it will pay 0.05 shares for every share owned by a shareholder.

The firm now owns 400 million shares of Coca-Cola, which makes up around 8.5% of its portfolio. Berkshire Hathaway owns over 9% of Coca-Cola's shares. Investing $1,000 in Coca-Cola: The big bet by Buffett in 1988 marked one of the largest bets on a public company by the legendary investor.

The stock price is halved—$50 becomes $25, for example—and the number of shares outstanding doubles. Splits can be at higher ratios from a 1-for-3 split to some recent splits that created 20 new shares for each original share. Fractional splits can occur too, such as a 3-for-2 split.

As of 6th of June 2023, Free Cash Flow is likely to grow to about 9.8 B, while Enterprise Value is likely to drop about 295.9 B. Coca-Cola shows a prevailing Real Value of $65.57 per share. The current price of the firm is $60.19. At this time, the firm appears to be undervalued.

The Coca Cola exhibits relatively low volatility with skewness of -0.07 and kurtosis of 0.99. However, we advice investors to further investigate The Coca Cola to ensure all market statistics is disseminated and is consistent with investors' estimations about Coca Cola upside potential.

Back in 1998 Coca-Cola was earning $0.70 or so per share and paying out $0.30 per share in dividends. With a share price above $40, this translates to an earnings multiple over 60 and a dividend yield under 1% - it's difficult to see solid returns when you buy securities with an earnings yield of less than 2%.

How much was co*ke stock in 2010? ›

Incredibly, Coca-Cola shares started the 2010s trading at around $28.50. The stock dipped as low as $24.74 by mid-2010, it's lowest point of the decade. From that point forward, Coca-Cola shares marched steadily higher throughout the rest of the 2010s with few interruptions.

For Contextlogic Inc Stock (WISH) price forecast for 2030, a forecast is offered for each month of 2030 with average WISH price forecast of $40.17, a high forecast of $64.73, and a low forecast of $40.27. The average WISH price prediction of 2030 represents a +476.38% increase from the last price of $6.97.

Stock Price Forecast

The 20 analysts offering 12-month price forecasts for Coca-Cola Co have a median target of 70.00, with a high estimate of 75.00 and a low estimate of 63.00. The median estimate represents a +16.09% increase from the last price of 60.30.

As per our price prediction, The maximum price target of coca cola stock can be between $95 to $110 in the next 5 years, if current growth continues.

Coca Cola Bottling Co has a volatility of 2.07 and is 2.23 times more volatile than NYSE Composite. 18 of all equities and portfolios are less risky than Coca Cola.

The all-time high CocaCola stock closing price was 64.30 on April 21, 2022. The CocaCola 52-week high stock price is 65.47, which is 8.7% above the current share price. The CocaCola 52-week low stock price is 54.02, which is 10.3% below the current share price.

Dividend Summary

There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.9. Our premium tools have predicted Coca-Cola Co with 98% accuracy. Sign up for Coca-Cola Co and we'll email you the dividend information when they declare.

Dividend Data

The Coca-Cola Company's ( KO ) dividend yield is 3.05%, which means that for every $100 invested in the company's stock, investors would receive $3.05 in dividends per year. The Coca-Cola Company's payout ratio is 58.89% which means that 58.89% of the company's earnings are paid out as dividends.

Is Coca-Cola a stable stock? ›

Coca-Cola has a stable business and it's a favorite of billionaire investor Warren Buffett. But its wide moat and solid financials haven't always led to strong returns for investors.

For example, Coca-Cola is a blue chip company that might not suffer from a recession because many choose to drink its products, regardless of economic conditions. Blue chip companies are known to have very stable growth rates.

As the #ShareAco*ke campaign was rolled out, users could purchase a can or bottle with their name on it or they could personalize it themselves on the website. Around the 2014 Winter Olympics in Sochi, Russia, the company was slammed by the LGBT community for consumers' inability to customize a can with the word 'gay.

Historical dividend payout and yield for CocaCola (KO) since 1964. The current TTM dividend payout for CocaCola (KO) as of June 02, 2023 is $1.84. The current dividend yield for CocaCola as of June 02, 2023 is 3.01%.