How Coca-Cola Can Increase Its Value in -- The Motley Fool
The Coca-Cola Company NYSE: KO is a leader in the beverage industry and offers hundreds of brands to consumers, including soft drinks, fruit juices, sports drinks and other beverages. The company found its early success and is most well-known for the Coca-Cola soft drink for which the company is named.
The beverage giant has been a stable of the global economy for years, and it has reached a point where many investors fear market saturationwhere the only way to go is down or stagnant at best.
However, there are many benefits in investing in a company with Coca-Cola's track record. It should come as no surprise that a company the size of Coca-Cola has an extremely clean balance sheet with high amounts of cash on hand and a low amount of debt.
This cash position gives Coca-Cola the ability to invest in product innovation, brand acquisition and advertising expenditures.
The company's low amount of financial leverage equates to a lower amount of interest payments in relation to its competitors, which translates to an even higher amount of cash flow. This cash flow increases benefits to investors in the form of future dividend payments and increased capital gains earned through company investments.
A company the size of Coca-Cola has an inherent amount of leadership within its industry. As of JulyCoca-Cola is the number one company in the beverage industry in terms of market cap. Coca-Cola garners an 8. This high valuation and its large market share come from Coca-Cola's ability to be a leader not just in the overall industry, but in key locations around the world. Mexico, for example, consumes almost twice the amount of Coca-Cola products as the United States.
While there are concerns about Coca-Cola's market saturation, many parts of the world, such as China, remain underpenetrated.
These markets provide a positive opportunity for future expansion. Coca-Cola has a product portfolio that includes more than brands, but it has consistently remained focused on mainly beverages, which has strengthened its product portfolio. While competitors such as PepsiCo offer a range of products that includes beverages and snacks, Coca-Cola has remained steadfast as a leader in beverage brands.
5 Reasons to Invest in Coca-Cola -- The Motley Fool
This has allowed Coca-Cola to keep its product messaging strong and offer consumers the best day trading margin futures of beverages on the market. While its product portfolio is large, Coca-Cola has kept its core competency of innovating, selling and distributing carbonated and non-carbonated beverages, which allows it to stay focused should i invest in coca cola stock its core business units.
A good example of this is the company's acquisition of Binary options review scam live trading Green Mountain Coffee, which offers a differentiated product that is still in the beverage wheelhouse. Coca-Cola's competitors, on the other hand, have to divide their attention between a wide range of product types. Coca-Cola has paid dividends for 53 years in a row, and it has increased its dividend each year.
For the first quarter ofCoca-Cola paid a dividend of 33 cents per share, which equates to a dividend yield of 3.
This is a signal to investors that Coca-Cola's senior leadership remains committed as ever to return cash to shareholders through the payout of large and growing dividend payments. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.
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Looking to Invest in 3ds system trade in gamestop Here's What to Expect KO, PEP By Evan Tarver August 13, — A Clean Balance Sheet It should come as no surprise that a company the size of Coca-Cola has an extremely clean balance sheet with high amounts of cash on hand and a low amount of debt.
Market Leadership How currency futures are traded company the size of Coca-Cola has an inherent amount of leadership within its industry.
Focus on the Right Product Portfolio Coca-Cola has a product portfolio that includes more than brands, but it has consistently remained focused on mainly beverages, which has strengthened its product portfolio. Consistent Dividend Payments Coca-Cola has paid dividends for 53 years in a row, and it has increased its dividend each year.
Coca-Cola has been a name synonymous with sustainable success. But are times changing?
Learn about Coca-Cola's ad spending and why the company has decided to spend the amount of money it does. Understand comparable companies and industries.Coca Cola Co - Why Invest in
Understand more about the Coca-Cola company and the PepsiCo company. Learn about the key similarities and differences that make both companies successful. The IRS has taken issue with how the company moves profits Read about how to use the Porter's five forces model to evaluate the competitive landscape and how a large company such as Coca-Cola still has rivals.
Coca-Cola will send its dividend payment on July 1 to shareholders of record as of June Slumping global soda consumption remains a headwind for the Atlanta-based company. Despite the beverage giant posting eight straight earnings beats, investors have felt anything but satisfied. Examine the global nonalcoholic beverage industry, and learn what percentage of the market is controlled by the two major Discover why Warren Buffett found Coca-Cola an attractive investment in One criteria of a Buffett stock pick is a moat Learn which food and beverage firms have the highest dividend yields and why investors consider companies' financial health Find out more about the categories in the food and beverage sector and the average long-term debt-to-equity ratio for the Learn about the countries, primarily emerging market nations, that are currently driving most of the growth in the food and Find out the safest way to invest in the food and beverage industry, and learn about ETFs that track the food and beverage No thanks, I prefer not making money.
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