- Coca-Cola’s strong brand portfolio, leadership position, and Dividend King status reflect its resiliency.
- Despite recent stock price increases, KO is not overvalued, with the multiple valuation method indicating potential upside and justified premium over peers.
- KO’s business model is highly cash-generative, supporting consistent dividend growth and maintaining an attractive risk-to-reward ratio for investors.
- The Company’s long-term track record and adaptability ensure it remains a ‘buy’ in my portfolio.
Coca-Cola (NYSE:KO) (NEOE:COLA:CA) doesn’t need much of an introduction. It operates globally through numerous soft drink brands, including Sprite, Fanta, and Coca-Cola. Moreover, the Company also operates within other beverage segments, including tea, water, and coffee.
For transparency, Coca-Cola holds a well-deserved place in my portfolio, and as I can imagine, in many investors’ portfolios due to (among other things) its Dividend King status. On July 29, 2024, the Company announced another quarterly dividend of $0.485 per share. Should the dividend be upheld for the following quarter, it would constitute an attractive (given the scale, track record, and maturity of the business) year-over-year DPS growth of 5.4%.
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