Sam’s Picks: Coca-Cola a good long-term investment | Opinion

Coca-Cola is one of the most popular beverages in the world and dominates the beverage industry. The sound of a can cracking followed by a drink fizzing is enough to whet anyone’s taste buds.

With such worldwide success, shouldn’t stocks be a guaranteed investment to make investors rich? Sit back, relax, and crack a Coke. I’m about to take this pick apart together.

Coca-Cola (KO) is huge. No matter where you are, you are sure to see company advertisements. This helped the company become a household name, and in various parts of the United States some people even refer to all types of soda as “cola.” Featuring favorites like Coke, Powerade, and Sprite, the company boasts soft drinks to suit all types of people and tastes.

No matter how famous Coca-Cola has become, like any business, it still needs money to operate. Looking at Coca-Cola’s third-quarter earnings report, the company posted his 10% growth in net revenue of $11.1 billion. The company’s earnings per share he rose 7% to 69 cents. The figure is above the estimated 64 cents, up from 65 cents a year earlier.

These numbers are better than expected and an improvement from last year, but it’s also worth noting that the stock dividend is 2.7%. It also has a beta value of 0.59, meaning it is a relatively stable and safe investment. Combined, these two numbers show that investors can hold stocks and collect dividends without fear of a significant price crash.

The company’s incredible earnings and prestige make it a great long-term investment. Billionaire Warren Buffett has called the stock one of his favorites, and his holding company, Berkshire’s Hathaway, owns nearly 10% of the company’s stock.

Buffett is known to be a good investor, and Coca-Cola was one of his biggest investments when he bought shares in the company in the late 1980s. When analyzing stocks, he looks at the big picture of the company and looks at things like cash flow, debt, and profit margins.

That philosophy has worked well for Buffett, who considers his investment in Coca-Cola one of his greatest accomplishments. If the equity is good enough for him to keep forever, why not get yourself in the action?

One of the hardest parts of investing is knowing when to buy high and sell low. Fears of a recession, continued inflation and interest rate hikes next year may be mitigated by Coca-Cola’s recent performance.

Even in times when the country’s economy is in recession, Coca-Cola is doing well. Since the beginning of the year, the S&P 500 has fallen about 20.3%, while Coke has fallen only about 2.8%. With inflation rising and stocks falling, people can still afford cheap Coke, which boosts the company’s success.

What makes the company even better is its unwillingness to compromise and the development of its products for the future. One of his longtime favorite drinks in bars and restaurants is ‘Jack and Coke’. To capitalize on this favorite, Coca-Cola has partnered with Jack Daniels to bring the drink to stores in a canned version.

It was a time when ready-to-drink cocktails and mixed drinks were booming in the market. Expanding Coca-Cola’s beverage portfolio into alcoholic beverages is a surprise for the company.

Coca-Cola does a lot and is respected by all investors. From dividends to future plans, Coke is on the road to success. And with a low beta, this stable pick should be able to weather economic storms, making it a great long-term investment addition to any portfolio.

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