Tuesday, February 11, 2014

Recent Buy - Coca-Cola (KO)

Earlier this week I purchased shares of the soft drink giant Coca-Cola (KO). This is my first position in the stock and I managed to purchase 32 shares at $38.00 which is about a little over a dollar away from a 1 year low. The stock has been under some selling pressure along with much of the overall market recently and I thought it was a great time to take advantage of that. I try not to buy stocks which have a P/E ratio over 20 and Coke is right there. However it's forward P/E is around 15.5 which isn't too bad especially when looking at Coke's historic P/E ratio. At this price the yield was a solid 3% and Coke is due for another dividend raise next quarter as well!
The Coca-Cola Company (KO), a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. This dividend king has raised dividends for over 50 years in a row.

KO Basic Statistics

  • Ticker Symbol: KO
  • PE Ratio: 20
  • Yield: 3%
  • Dividend Growth 10yr:  9.8%
  • Payout Ratio: 57%
  • Market cap: $170 B
  • Website: http://www.cocacola.com


  1. Captain Dividend,

    I totally agree with the KO purchase and added it to my portolio this month as well. Thank you for sharing your thought process and congratulations on increasing your yearly dividend with the 32 new shares!

    Take Care,


  2. Welcome fellow shareholder. I've owned Coca-Cola for years, and have been very happy with my investment. I added some shares on the dip a couple months back. Their products are an affordable luxury, so even as US sales continue to fall.....emerging market sales will continue to climb. Plus, I'm encouraged by their push into juices. Coke isn't as diversified as Pepsico, but I think you made a great investment.


  3. Captain,

    Solid purchase. KO was one of my recent buys as well and I'm always interested in adding. The partnership with Green Mountain is quite interesting as well.

    Best wishes!

  4. Great purchase here CD! I've got a bit of KO in my portfolio and wish I had more! A core position for sure in any DG portfolio.

  5. CD - No one has ever gone broke buying KO that is for sure. Being in Canada I limit the number of US dividend stocks I own to about 1/3 of my portfolio, and have never owned KO. As you mentioned it is often on the expensive side using P/E, and I have some concern with the movement away from carbonated beverages. All that being said, I seriously considered buying some last week, and I agree with Dividend Mantra that the Green Mountain purchase is interesting and could be a catalyst for KO.

  6. Hi Captain,

    oh yeah!
    KO is definitly always a buy!
    One of the greatest companies in the whole world!

    Best regards

  7. I love me some KO products and KO stock. And judging on their company history, I'm not alone on either fronts. Not the best price but for a company this high quality there's not that many horrible prices. I almost added some last week but had to go with some other positions that were a bit underweight. I like the buy here.

  8. Great purchase! I love KO and will be adding more throughout 2014.

  9. Thanks for the nice article. I also addes some KO today.

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