The price of shares of Coca-Cola today is 13.6% lower than at the beginning of 2020, and the profit with revenues of the second quarter fell by a third due to lower sales in restaurants and entertainments in the conditions of a pandemic. At the same time, shares of Coca-Cola are considered to be a “blue chips”, and the company has a long history of credibility and continuous series of annual dividend of increasing length of 58 years.<\/p>\n
International economists warn that the negative effects of the pandemic for retailers will continue for a long time. In turn, the leadership of Coca-Cola in July reported that sees improving demand in the weakening of quarantine measures worldwide.<\/p>\n
Nevertheless, most investors recognize the current uncertainty that persists in the short term. However, if we consider the shares of Coca-Cola as an asset for long-term investment, it is worth considering that the company is exceptionally durable and stable in the position of covering a broad market.<\/p>\n
The history of Coca-Cola, since entering the public market on September 5, 1919, proves that its shares are a “gift” for a long-term investor. At the time of the IPO, one share of Coca-Cola was worth $ 40, since then, after 13 splits, one share has turned into 9,216, and an investment of $ 100, a century later today would turn into at least $ 1.1 million. If you simultaneously reinvested dividends, profitability would double again.<\/p>\n
Coca-Cola shares are a very profitable investment if you intend to earn by receiving dividends with a yield in the range of 1.2% -3.5% (the range for the last 30 years of Coca-Cola history). Only in 2019 the global beverage producer paid dividends of $ 6.8 billion, which was facilitated by a free cash flow of $ 9.4 billion. Interestingly, the figure of $ 6.8 billion is the sum of Coca-Cola’s market capitalization in the summer of 1985.<\/p>\n
A dividend yield of 3% may not seem so great, but in the amount of stock growth, such an asset promises to be a big profit in the long run.<\/p>\n
Also, do not forget about the possibility of reinvesting dividends. The inclusion of dividend reinvestment plan (DRIP) for shares of Coca-Cola since the mid-1970s to date would increase the return on investment in double.<\/p>\n
Under such circumstances, the revenue of $ 1.1 million per share in 1919 would have been $ 2.47 billion. Thus, Coca-Cola is an example of the centennial history of successful business models of dividend policy, favorable to shareholders.<\/p>\n","protected":false},"featured_media":122263,"menu_order":0,"template":"","newscat":[9],"newstag":[26146,26360,24347,24933,24936],"issues":[],"class_list":["post-122262","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti","newstag-coca-cola","newstag-coronavirus-pandemic","newstag-ipo","newstag-pandemyya-koronavyrusa","newstag-pandemiya-koronavirusu"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/122262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/122263"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=122262"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=122262"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=122262"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=122262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}