Coca-Cola, Trump’s Favorite, Increases Quarterly Dividends for 63 Consecutive Years; The Motley Fool Lists it as a High-Yield Stock
President Trump drinks several cups of Diet Coke every day
President Trump drinks several cups of Diet Coke daily, and Warren Buffett also makes sure to showcase his favorite Coca-Cola during his appearance on CNBC. Both super endorsers receive no advertising fees and promote Coca-Cola for free. The charm and unique formula of Coca-Cola remain unwavering for its fans and supporters. Analysts at The Motley Fool believe that Coca-Cola (Coca-Cola NYSE: KO) will remain resilient amidst numerous uncertainties in the future economic market, even providing investors with dividends to collect.
Coca-Cola’s stock price has risen by 11.2% this year, outperforming the overall market. Analysts argue that Coca-Cola offers high dividend yields for investors who rely on dividends for their livelihoods, making it one of the best consumer stocks for generating passive income. The following is a comprehensive analysis and introduction based purely on market observations, not investment advice.
Trump’s office has a dedicated Diet Coke call button
According to the Wall Street Journal, after taking office, Trump had a Diet Coke call button specially installed in his office. Whenever he wants a drink, he simply presses the button, and his favorite beverage is delivered immediately. He even issued an executive order regarding this decision.
Coca-Cola is produced globally, unaffected by tariff impacts
Globally, consumers spend over $2.2 billion daily on Coca-Cola beverages. Coca-Cola licenses factories worldwide for bottling and sales, allowing the drinks to be sold in local markets, thereby resisting the impact of import tariffs that could affect performance. In addition to its namesake brand, Coca-Cola owns water, tea, juice, and various carbonated drinks, contributing over $47 billion in revenue.
Coca-Cola’s net profit margin exceeds 20%
Coca-Cola’s net income reached nearly $11 billion last year, with a profit margin exceeding 20%, more than double the corporate average. Coca-Cola typically distributes three-quarters of its profits in the form of dividends.
Coca-Cola has increased its quarterly dividend for 63 consecutive years
Coca-Cola is considered an elite dividend company, having increased its quarterly dividend for 63 consecutive years. Based on the current quarterly rate of $0.51, the expected forward dividend yield is an attractive 2.95%.
Analysts optimistic about Coca-Cola’s future growth potential
The Motley Fool analysts believe that approximately 80% of the global population resides in emerging markets, with less than one-third consuming commercial beverage products. Considering Coca-Cola’s opportunity to reach consumers in emerging markets worldwide, there are opportunities for market expansion, and investors should continue to see dividends grow, making it a high-yield stock worth buying.
Coca-Cola introduction
On May 8, 1886, Dr. John Pemberton brought his developed syrup to Jacobs’ Pharmacy in Atlanta, pouring the world’s first glass of Coca-Cola. Since then, Coca-Cola has evolved into a world-class beverage company.
Coca-Cola owns over 200 brands and thousands of beverages globally. The company continuously updates its product formula, introducing reduced-sugar and sugar-free Diet Coke, establishing eco-friendly recycling systems, and employing over 700,000 workers in partnership with bottlers worldwide, contributing to the local economy.
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