Daily Stock Pick: Coca-Cola Co
A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fifth of five consumer defensive sector stocks primed to join Volio as the fifth of five representing the sector. One of the stocks I discussed this week could be the forty-ninth overall selection for Volio!
My subject today is a large-cap non-alcoholic beverages company named, Coca-Cola Co. Its trading ticker is KO. This is my second report on Coca-Cola Co for this Volio portfolio. The precious report was on December 30.
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 nonsparkling brands, such as Minute Maid, Georgia Coffee, 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 represented 85% of the company’s unit case volume in 2018. Coca-Cola recently expanded its presence in the hot-beverage market through its acquisition of Costa, a leading coffee company in the United Kingdom. The firm generates most of its revenue internationally.
It operates through a network of company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers.
The company was founded in 1886 and is headquartered in Atlanta, Georgia.
I use three key data points to gauge dividend equities or funds like Coca-Cola Co:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
KO Price
Coca-Cola's price per share closed at $47.42 yesterday. A year ago their price was $53.18. Price fell $5.76 or over 10.83% last year.
Assuming Coca-Cola's stock trades in the range of $36 to $54 this next year, its recent $47.42 price might rise by $3.58 to reach $51.00 by August 7, 2021.
KO Dividends
Coca-Cola's most recently declared quarterly dividend was $0.41, payable October 1st. That equates to $1.64 annually and yields 3.46% at yesterday's $47.42 share price.
KO Gains?
Adding the $1.64 annual estimated dividend to my $3.58 optimistic estimate of Coca-Cola's price upside shows a $5.22 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little under $1,000.00 today in Coca-Cola Co at $47.42 we would buy 21 shares of stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.48 per share.
Subtract that $0.48 brokerage cost from my estimated $5.22 gross gain per share results in a net gain of $4.74 X 21 shares = $99.54 for a 9.95% net gain on a $995.82 investment.
Thus, Coca-Cola Co shows a possible 9.95% net gain including a 3.46% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Coca-Cola Co is worth it.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...
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