Reuben Gregg Brewer, The Motley Fool
Tue, December 23, 2025 astatine 8:05 AM CST 5 min read
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Coca-Cola is 1 of the world's largest and best-run user staples companies.
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Coca-Cola has an unthinkable dividend way grounds and comparatively precocious yield.
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Coca-Cola's valuation is presently precise reasonable.
Good companies don't spell connected merchantability precise often. It isn't hard to recognize why, since semipermanent investors thin to similar owning bully companies. So a tenable terms for a bully institution tin beryllium a immense buying opportunity. That's the communicative down Coca-Cola (NYSE: KO) close now. Here are 3 reasons wherefore investors mightiness privation to bargain the iconic soda shaper arsenic if determination were nary tomorrow.
Coca-Cola is 1 of the world's largest user staples companies. With a marketplace headdress of $300 billion, it comes successful astatine No. 3 down 2 globally diversified retailers and much nonstop adjacent Procter & Gamble (NYSE: PG). Coca-Cola operates among an elite radical of companies with an awesome planetary scale.
However, there's much to the communicative present than conscionable being big. Coca-Cola has a marque portfolio that is 2nd to nary successful the non-alcoholic beverage niche. It possesses selling and organisation strengths that are adjacent to those of immoderate competitor. And it has an innovation squad with a past of introducing compelling caller products. Its size, however, is inactive a assistance connected the merchandise side, due to the fact that Coca-Cola has the standard to enactment arsenic an manufacture consolidator. That allows it to bargain its mode into caller sensation and spirit trends arsenic needed.
It would beryllium hard to find a user staples institution that is managed amended than Coca-Cola. Its monolithic marketplace headdress is simply a motion that investors admit conscionable however good tally it is.
Coca-Cola's beardown concern is highlighted successful different way. It has accrued its dividend annually for implicit six decades, placing it successful the ranks of the Dividend Kings. A institution can't physique a dividend grounds similar that without being good run. However, that grounds besides shows that absorption and the committee of directors spot a precise precocious worth connected returning worth to shareholders via the dividends the institution pays.
If you are an income investor, Coca-Cola's dividend way grounds volition beryllium a precise charismatic attribute. So, too, volition beryllium its 2.9% dividend yield. To beryllium fair, you tin find higher-yielding user staples stocks, but those investments volition apt travel with much risk. And 2.9% is inactive rather notable today, considering that the S&P 500 (SNPINDEX: ^GSPC) yields conscionable 1.1%, and the mean output for a user staples shaper is 2.7%.

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