Coca-Cola is the
granddaddy of all global consumer product companies. They have been in business for 127 years and sell more than 3,500 products in over 200 countries. Historically, KO has been considered an
aggressive growth company. Today, they
have an unassailable line-up of drink brands, extensive distribution network,
an extremely competent & shareholder-friendly management team, and a
rock-solid balance sheet. Everything you
would want in a long-term investment.
Key Financial Metrics
KO launched a 2020 Vision, in 2009, with their international bottling partners to
double revenues this decade. So whereas
they are a huge company today, management believe they can grow 2x from 2010 to
2020. And given management’s outstanding
record (with the exception of the New Coke debacle), this is pretty much a
one-way bet in your favor.
36% of their volume comes from Eurasia, Africa and the Pacific. This is a huge under tapped growth potential.·
a look at the dividend growth, payout ratio and cash used for share
buybacks. The total return of capital to
shareholders is an excellent 72%.
Buffet’s Berkshire Hathaway owns 9% of the company (400 million shares);
Coca-Cola has raised its dividend 1,300% since Buffett first bought shares in
corporate awards include: #4 Most Admired Company (Fortune), Top 20 Most
Innovative (Fast Company), Top 50 Most Diverse Companies (Diversity Inc),
Creative Marketer of the Year (Cannes Lions).
by Interbrand as the World's Most Valuable Brand, with 2012 value of $77.8
billion (46% of its market cap comes only from its brand).
has 51 years of consecutive annual dividend increases, making this company an
excellent long term DRIP candidate.
Other Pertinent Facts
of DRIP program: Fair (Coca-Cola only gets a Fair ranking due
to setup costs and ongoing investment fee, dividend reinvestment fee and sales
an investor? yes, DRIP investor since
word of caution - if you are investing $25 or less per month, I would not
invest in Coca-Cola as its ongoing automatic investment fee of $2 would eat 8%
of your investment each and every time.
ranking out of ranking system of Poor, Fair, Good, Excellent.