The Coca-Cola Company (KO) is an outstanding dividend growth stock. The soda giant is a Dividend King with 61 consecutive years of dividend growth. The company is also one of 24 American companies having paid a dividend for over 100 years. After years of lower dividend safety and difficulty growing earnings, the company has turned the corner under new leadership. As a result, revenue and profits have increased during the past five years. Moreover, Coca-Cola’s (KO) dividend safety has improved.
Also, the company continues to return cash to shareholders. In addition, we believe the company will continue to generate growth in its market segments and maintain global leadership. Consequently, Coca-Cola (KO) is suitable for a buy-and-hold portfolio because of the market leadership, consistent dividend growth, and dividend safety.
Overview of Coca-Cola
Coca-Cola was founded 130+ years ago, in 1886, in Atlanta, Georgia. Today, it is the largest non-alcoholic beverage company and one of the largest packaged food and drink companies globally. Coca-Cola is truly a global brand with operations in over 200 countries. In fact, the company has about 13% volume share in developed markets and 5% volume share in developing & emerging markets.
The firm makes and sells almost every type of non-alcoholic drink, including carbonated soft drinks, water, enhanced water, sports drinks, dairy, juices, teas, coffees, and energy drinks. In 2022, Coca-Cola sold ~32.7 billion unit cases. Sales are through its network of company-owned, company-controlled, affiliated, or independent bottlers, distributors, wholesalers, and retailers worldwide.
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