Coca-Cola(KO)

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This stock to pay Warren Buffett $200 million in dividends on July 1; Should you buy?
Finbold· 2025-05-31 13:23
Core Insights - Warren Buffett's long-term investment in Coca-Cola continues to yield significant dividends, with Berkshire Hathaway set to receive over $200 million in dividends in July 2025 [1][2] - Coca-Cola has maintained a consistent dividend performance, marking its 63rd consecutive yearly increase with a recent 5.2% raise [5] - The company projects solid growth potential, with organic revenue growth of 5% to 6% and EPS growth of 2% to 3% for 2025, outperforming competitors like PepsiCo [6] Dividend Performance - Coca-Cola's upcoming quarterly dividend is $0.51 per share, leading to a total of $204 million for Buffett on July 1, 2025 [1][2] - The dividend payout ratio is a sustainable 69%, based on projected earnings per share of $2.88 for 2024 and up to $2.95 for 2025 [5] - The company has a dividend yield of approximately 2.8%, making it attractive for income-focused investors [9] Financial Performance - Coca-Cola's first-quarter 2025 results showed a 6% increase in organic revenue, meeting the top of its forecast range, while EPS rose 1% year-over-year despite currency challenges [7] - The company reaffirmed its full-year guidance, indicating resilience amid broader market uncertainties [8] Market Position - Coca-Cola shares have performed in line with the broader market, recently closing at $72, reflecting a less than 1% increase [3] - The company's strong global brand recognition and fundamentals support its growth potential, distinguishing it from peers facing weaker consumer demand [6]
Why Is Coca-Cola (KO) Down 1.9% Since Last Earnings Report?
ZACKS· 2025-05-29 16:37
It has been about a month since the last earnings report for Coca-Cola (KO) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Coca-Cola due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns ...
This Dividend King Is Crushing the Market. Here's Why It Offers Years of Passive Income Growth.
The Motley Fool· 2025-05-25 19:29
Core Viewpoint - Many top growth stocks are underperforming due to concerns over tariffs, despite a temporary deal between the U.S. and China that postponed some tariffs [1][2] Company Overview - Coca-Cola is the largest beverage company globally, with $47 billion in trailing 12-month sales, and has shown significant improvement since CEO James Quincey took over in 2018 [4] - The company has restructured to become leaner and more efficient, owning about 200 global brands, with Coca-Cola and Sprite leading in U.S. brand awareness among soft drinks [4] Market Position and Resilience - Coca-Cola's products are affordable, making them attractive to consumers even during economic downturns, and the company has adapted its packaging to maintain affordability despite inflation and tariffs [6] - The majority of Coca-Cola's beverage production occurs in the markets where they are sold, minimizing exposure to higher import taxes [7] Financial Management - Price increases due to tariffs on certain products are expected to be minimal relative to Coca-Cola's overall cost structure, and the company has strategies in place to mitigate impacts [7] - Coca-Cola has established financial hedging positions to manage foreign currency exchange rate fluctuations, given its global operations [7] Dividend Reliability - Coca-Cola is recognized as a Dividend King, having increased its annual dividend for 63 consecutive years, demonstrating resilience through various economic conditions [9] - The current dividend yield is 2.8%, which is lower than usual due to a 14% increase in stock price this year, compared to a flat S&P 500 yielding about 1.3% [10] Long-term Value - Coca-Cola is expected to continue distributing profits to shareholders and raising dividends annually, providing long-term value to a diversified portfolio, even if it is not a top growth stock [11]
Better Buffett Stock: Constellation Brands vs. Coca-Cola
The Motley Fool· 2025-05-22 10:07
Which one of these Oracle-approved stocks is the better investment right now?Warren Buffett plans to step down as the CEO of Berkshire Hathaway (BRK.A -0.21%) (BRK.B -0.34%) at the end of this year, but he's still making some big trades for the conglomerate's $285 billion portfolio. Last year, Buffett reduced Berkshire's stakes in several of his top stocks -- including Apple and Bank of America -- and boosted its cash and short-term U.S. Treasury holdings to record levels. Those cautious moves indicated tha ...
Wall Street Analysts Think Coca-Cola (KO) Is a Good Investment: Is It?
ZACKS· 2025-05-19 14:31
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Coca-Cola (KO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Coca-Cola currently has an average brokerag ...
Coca-Cola Stock Slips Below 50-Day SMA: Time to Buy or Exit?
ZACKS· 2025-05-13 14:31
The Coca-Cola Company (KO) stock recently slipped below its 50-day simple moving average (SMA), indicating a potential short-term bearish trend. Yesterday, KO stock closed at $69.53, staying below the 50-day SMA of $70.88. The stock of this beverage behemoth has been witnessing a significant downtrend in the past month, which resulted in a fall below the 50-day SMA on May 9, 2025. Since then, KO stock has been on a downtrend. Notably, KO stock has declined 3.9% since reporting earnings on April 29, 2025.Coc ...
Is Following Buffett's Lead With Staples Like Coca-Cola the Secret to a Recession-Proof Portfolio?
The Motley Fool· 2025-05-11 07:46
Group 1: Investment Philosophy and Strategy - Investors often seek ways to make their stock portfolios more resilient to recessions, with Warren Buffett's investment philosophy being a focal point [1] - Berkshire Hathaway's strategy includes maintaining approximately $348 billion in liquidity while holding a significant stock portfolio, including Coca-Cola [1][4] Group 2: Coca-Cola Investment Overview - Berkshire Hathaway first invested in Coca-Cola in 1988, with no additional purchases since 1994, raising questions about the stock's current viability for recession-proofing [2][8] - The initial investment of just under $1.3 billion has grown to a position of 400 million shares valued at approximately $28.8 billion [4] - Coca-Cola has increased its dividend for 63 consecutive years, with the current payout at $2.04 per share, leading to an expected $816 million in dividends for Berkshire this year [5][13] Group 3: Market Position and Performance - Coca-Cola's products are considered essential, making the company attractive during recessions, as consumers may opt for its beverages over more expensive alternatives [6] - Despite a strong dividend yield of about 2.75% for new investors, the stock's growth potential is limited, with a P/E ratio of 29, slightly above its five-year average of 27 [8][11] - Coca-Cola's stock rose 15% over the last year and 61% over the previous five years, but faced a correction in 2022, indicating potential vulnerability in a recession [10][12] Group 4: Investment Outlook - Current market conditions suggest that Coca-Cola may not be the best choice for investors looking to recession-proof their portfolios, as Berkshire Hathaway has indicated a hold rather than a buy [12][13] - The high P/E ratio combined with single-digit profit growth forecasts raises concerns about the stock's resilience in a downturn [11][14]