New Report: Coca-Cola (KO)

Coca-Cola Co, known by the ticker symbol KO,  is a large-cap non-alcoholic beverages maker, operating in the consumer defensive business sector. This is my first report on KO for this Viital portfolio. I have discussed Coke for some of my previous six dog of the week portfolios.

Coca-Cola is the largest nonalcoholic beverage entity in the world, owning and marketing some of the leading carbonated beverage brands, such as Coke, Fanta, and Sprite, as well as non-sparkling brands, such as Minute Maid, Georgia Coffee, Costa, and Glaceau. 

Operationally, the firm focuses its manufacturing efforts early in the supply chain, making the concentrate (or beverage bases) for its drinks that are then processed and distributed by its network of more than 100 bottlers. 

Concentrate operations represent roughly 85% of the company's unit case volume. The firm generates most of its revenue internationally, with countries like Mexico, Brazil, and Japan being key markets outside of the U.S.

The company was founded in 1886 and is headquartered in Atlanta, Georgia.

Three key data points gauge any dividend equity or fund such as Coca-Cola Co (KO): (1) Price (2) Dividends (3) Returns.

Those three basic keys best tell whether any company has made, is making, and will make money. 

KO Price

Coca-Cola's price per share was $62.55 as of Friday's market close. One year ago its price was $50.22. Thus, Coke's share price increased $12.33 or 24.6% in the past year.

If Coca-Cola's stock trades in the range of $50.00 to $70.00 this next year, its recent $62.54 share price might rise by $4.45 to reach $67.00 by February 22, 2023. This estimate is $0.19 below the median of target prices estimated by 24 analysts covering Coke for brokerages.

KO Dividends

Coca-Cola's most recent quarterly dividend of $0.42 is payable April 1st, to shareholders on record as of March 14th.  The KO Annual estimated dividend payout per share of $1.68 yields 2.69% per yesterday's $62.55. closing price. 

Coke has paid regular quarterly dividend payouts, generally increasing annually since April 1988. That stretch will mark 34 years come April 1.

KO Returns

Adding the $1.68 annual Coca-Cola forward-looking dividend to its estimated one-year price upside of $4.45 shows a $6.13 potential gross gain, per share, to be reduced by any costs to trade KO shares.  

At Friday's $62.55 price per share, a little over $1000 would buy 16 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.63 per share.

Subtract that maybe $0.63 brokerage cost from my estimated $6.13 gross gain estimate per share results in a net gain of $5.50 X 16 shares = $88 for a 8.8% net gain on a $1,000.80 investment.

So it is that Coca-Cola Co (KO) shows a possible 8.8% net gain including a 2.69% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Coca-Cola Co (KO) could generate $26.90 in cash dividends alone. Note that a single share of KO stock bought at yesterday's share price of $62.55 is almost 2.5 times greater than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a terrible time to pickup Coca-Cola Co (KO) shares. The estimated next-year dividend from $1K invested is 2.33 times LESS than yesterday's single share price of KO. Consider yourself alerted. It's a sign!  Wait for Coke's share price to drop to $41.00

All of the estimates above are speculation based on the past history of Coca-Cola Co (KO). Only time and money invested in this stock will determine its market value.