6 reasons to buy Coca-Cola stock like there’s no tomorrow
Coca-Cola’s stock is known for delivering consistent returns, but new leadership could reinvigorate growth.
coke (Watt-hours 0.41%) It’s older than clothing zippers, airplanes, and sliced bread. Now 134 years old, the company continues to dominate the beverage sector and remain relevant globally. There are several reasons to buy Coca-Cola stock right now, and surprisingly, our love for the soda isn’t one of them.
today’s change
(-0.41%)$-0.32
current price
$78.68
Key data points
market capitalization
$338 billion
work range
$78.13 -$79.40
52 week range
$65.35 -$80.41
volume
17M
average volume
18M
gross profit
63.34%
dividend yield
2.59%
Revitalized with new leadership
Chief Operating Officer Henrique Braun will become CEO of the company on March 31. Coca-Cola also created a new executive position: Chief Digital Officer (CDO). The role will be held by Sedef Salıngan Şahin, who will focus on how digital strategy can “strengthen execution, simplify the way we work, and enable us to serve consumers with more accuracy and faster speed,” Brown said in a January press release.
This change in operational leadership will help Coca-Cola remain current in a rapidly changing consumer environment. Additionally, shaking up your digital strategy can reinvigorate your company’s growth trajectory.
Coca-Cola remains one of the most powerful brands in the world.
Coca-Cola and its products can be found all over the world. The company’s products enjoy premium shelf space and have maintained customer loyalty not just for years but generations. Brand power is your most important competitive advantage.
We are not just a soda company. Coca-Cola’s portfolio includes sports drinks, energy drinks, bottled water, coffee and tea. If you drink water other than tap water, there’s a good chance you’ve recently consumed a Coca-Cola product. A diverse portfolio is an important aspect of a company’s ability to navigate changes in consumer behavior.
Coca-Cola is the Dividend King
Dividend Kings are defined as companies that have paid dividends for at least 50 consecutive years. Coca-Cola has been paying dividends for 60 years and currently pays $0.51 per share quarterly. The company has also consistently increased its dividend for decades. For income investors, Coca-Cola is an elite and trustworthy company.
Excellent free cash flow
Why is Coca-Cola’s strong free cash flow important? Not only does it fund consistent dividends, but it also allows Coca-Cola to continue to expand through strategic acquisitions. Although Coca-Cola is not a high-growth company, the company remains positioned to acquire brands that it believes will add meaningful shareholder value. Acquisitions are not frequent, but they are impactful.
Image source: Getty Images.
KO is a stock with strong defense
Coca-Cola will provide a stock portfolio with lower volatility than most stocks during uncertain economic times. The current beta version is only 0.36. This means that Coca-Cola will not be affected by increased volatility. As its more than 100 years of history prove, this beverage giant is resilient even in economic downturns.
Buy Coca-Cola Stock for Total Profits
Consistent dividends, stock buybacks, and steady long-term growth make Coca-Cola an excellent choice for investors who prioritize total return. Coca-Cola expects growth of 4-5% in 2026. This level of growth is nothing to explain, but it’s exactly what the company’s investors expected.
Mid-single-digit growth combined with dependable earnings is what makes Coca-Cola’s stock a basic holding in any long-term stock portfolio.
