Prediction: Coca-Cola Stock Will Soar Over the Next 5 Years. Here's 1 Reason Why.

Core Viewpoint - Coca-Cola's steady earnings and dividend growth are expected to drive significant total returns over the next five years, despite its performance lagging behind the S&P 500 [1][2]. Company Performance - Coca-Cola's current market capitalization is approximately $303 billion, with a year-to-date return of 12%, making it one of the few consumer staples stocks to rise over 10% this year [2][3]. - The company's earnings per share (EPS) is projected to increase by 3.7% to $2.99, supported by a 2.9% sales growth to $48.2 billion [3][4]. Dividend and Income Growth - Coca-Cola has a strong track record of dividend growth, having increased its payout for 63 consecutive years, with a current dividend yield of 2.9% [5][6]. - The company is expected to add over $1 billion in net income annually, potentially raising adjusted EPS from $2.99 in 2025 to an estimated $4.26 in 2030 [7]. Future Projections - Based on a 10-year P/E ratio midpoint of 22x, Coca-Cola's share price could reach around $93 by 2030, along with an estimated cumulative dividend income of over $11, leading to a total return of about 55% over five years [8].