The Coca-Cola Company
Coca-Cola (Ticker – NYSE: KO) has been a foundational dividend stock within the SIPP since 2016. Coca-Cola has been established for well over 130 years and is a well run business. Some people or investors refer to it a marketing machines as it has over 200 brands and is sold in over 200 countries around the world. You could also argue the diversification case again here, as it has a global footprint and diversified revenue streams on every continent.
On my initial research back in 2014/15 I knew that one of the worlds most famous investors Mr Warren Buffett held shares in Coca-Cola within their Berkshire Hathaway business empire. As far as I am still aware at the time of writing this article and the last time I checked they still do hold shares. KO is a popular among many institutional and mutual fund holders.
What I like about Coca-Cola and made KO part of my investment thesis:
1, Coca-Cola is one of the most recognisable brands in the world and is also one of the largest non-alcoholic beverage businesses globally.
2, The group offers over 200 brands like Fanta, Sprite, Schweppes, not forgetting the obvious, plus other sparkling soft drinks within their portfolio of brands.
3, KO has also enhanced its offerings to include tea & coffee. Investments in Honest Tea & Costa was a shroud move gaining a global footprint in the hot beverage markets.
4, Healthy options are also available within the portfolio of brands, offering another diversified way from the high sugar fizzy drinks business, offering water and Nutritional categories like: Vitamin Water, Dansai, Powerade, Simply Jucies, Innocent Smoothies.
5, Coca-Cola is a dividend King paying out a regular income stream for over 50 years. Historical dividends can be found here on their website.
The Coca-Cola average five year share price
Coca-Cola’s average share price over the last five years (11/08/2019 to 05/08/2024) sits between:
At the lowest point at the start of the pandemic in March 2022 the stock hit a low of $37.51.
To the highest point of $69.67 on the 02/08/2024.
Using my own methods of valuing the stock using various metrics over a five year period and utilising any market pull back, my target price would sit between a range of $37 to $45 dollars.
Coca-Cola Dividends
The Coca-Cola Company stock is classed as a dividend king as it has paid a dividend for over 50 years. KO has been paying and increasing its dividend for 60 years.
Dividends are distributed quarterly in the months of April, July, October and December.
Payments are made in US dollars so income will fluctuate depending on the strength of the currency vs. US dollar. This is evident in the slight fluctuations shown in the file below.
Coca-Cola’s Q4 dividend was $0.485 cents or $1.94 annually (29/11/24 ex-dividend date).
Ten year history of Coca-Cola's dividends
For research purposes I have listed below how the previous dividends have grown over the past ten years:
2023 $1.84
2022 $1.76
2021 $1.68
2020 $1.64
2019 $1.60
2018 $1.56
2017 $1.48
2016 $1.40
2015 $1.32
2014 $1.22
Coca-Cola fundamentals
PE: 26.37 (18/12/2024)
Forward PE: 21.81 (18/12/2024)
Dividend Yield 3.06% (18/12/2024)
Total dividend income received over eight years is £1,041.76p
I have added a little extra insight into how the annualised payments have increased by adding an additional column and showing an annual total.
Further income analysis can be seen in the file below:
KO
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