Stock of the Week: Coca-Cola

With 1.9 billion servings of Coke enjoyed every day, our Stock of the Week Coca-Cola needs little introduction. But what's the investment case for the beverage behemoth? 

Holly Black 16 April, 2021 | 8:50AM
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Beverage company Coca-Cola (KO) needs little introduction. The infamous soft drink was first created in 1886 when John Pemberton, a pharmacist from Atlanta, decided to whip up a caramel-coloured liquid with some carbonated water and sell it for 5 cents a glass. The drink was soon trademarked and its popularity has only grown. This week our Twitter followers have voted it Stock of the Week from a choice of four US dividend-paying stocks.

The US stock market is not known for its dividend-paying credentials – in fact, the average yield on the S&P 500 is around 1.5%. But Coca-cola yields an attractive 3.11% and is also rated as four stars by Morningstar analysts, indicating that at its current price of $53, it is trading below its fair value estimate of $55.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk