Naaju Breaking News, Live Updates, Latest Headlines, Viral News, Top Stories, Trending Topics, Videos
[ad_1]
No need to explain and delve into the history and affairs of Coca Cola, a company that owns one of the best known and most important brands in the world.
What is important to note is the behavior of its action over time. Let’s look at the historical chart of Coca Cola, in monthly compression:
As we can see, this is an action that has borne fruit over the years.
Most important of Coca Cola is that it is an extremely strong and financially healthy company. Thanks to these virtues, the share price behaved well and with very little volatility, compared to other stocks.
Why investing in Coca-Cola is a good idea
First of all, I want to show you the annual Coca-Cola yields from 1962 to date:
The stock has suffered losses in just 14 years since 1963. Its worst performance was in 1974 (oil and financial crisis) with a drop of 58%. After that, its second worst performance was -26% during the 2008 crisis. In contrast, its best returns were recorded in 1991 and 1975, with increases of 73% and 55%, respectively.
Over the period considered, the annualized average was 12.3%, which testifies to its ability to generate value. Additionally, it has experienced low volatility over the years, which shows how robust the business is.
In a current context of extreme variability and rapidity of movements, reinforced by the liquidity injected by the Fed, having a coherent and solid action is an essential factor in deciding on an investment.
Adaptation
Coca-Cola Company has been able to adapt to new changes in habits and consumption that people ask. We know that there is a philosophy that calls for a healthier life.
The consumption of carbonated drinks is steadily declining and that is why Coca-Cola has taken action in this area. He was able to interpret the change in trend and adjust his strategy to new consumption habits.
Today, it has over 500 brands (and over 3,500 products) that are sold around the world, with a focus on healthier, sugar-free drinks.
Recent balance and valuation
Two months ago, he presented his quarterly report with excellent results. Sales reported by $ 10.130 million, 9% higher than expected by the market. These sales were 40% higher than in the same period of 2020. Its net income was a profit of $ 2,640 million.
It currently has a market valuation of $ 237,000m and trades at a price / earnings ratio of 28. For your reference, Pepsi (PEP) is worth $ 214,000m and trades at a ratio of 26 times earnings (price / profit). earnings). earnings).
The KO differential
Without a doubt, aside from the strength of the company, its returns and low volatility, Coca-Cola’s big differential (KO) are its dividends.
Historically, it has been characterized by granting juicy returns to its shareholders. This distribution is made on a quarterly basis and currently represents $ 0.42 per share. If we annualize it, it totals $ 1.68, or 3% above the current price.
This is why Coca Cola is an important stock to have on the radar, since it has always recognized its shareholders by providing them with an annual income of around 3%, in addition to the capital gain that is perceived by the increase. the price of its share. . . .
Let’s take a look at the quarterly dividends paid over the past 15 years:
The trend is clear and bullish. Coca-Cola returns very well to its shareholders over time.
conclusion
When you think of historic brands, you always think of Coca Cola, despite the fact that the relative importance of its flagship drink is declining due to the growth of other healthier drinks.
Beyond that, its stock was very attractive in terms of behavior and returns. The fact that you pay a high and persistent dividend gives you a plus over the rest.
Obviously, who has Coca Cola It doesn’t look for stratospheric returns, but it is a strong, established stock whose fundamentals need to be factored into the portfolio.
Even if we must not forget that the market is located in an area close to historical highs, with very high indicators, with all that this involves risk. Therefore, if we plan to include it in our portfolio, in any case, we must use a stop-loss.
Finally, I want to invite you to download a free report that I have prepared so that you can face the next crisis and know how to beat the market. I honestly think it will serve you a lot, it has no waste. You can download it on this link:
.
[ad_2]
Source link
