Is Coca-Cola a Good Investment?

PHOTO CREDIT: Coca-Cola

OVERVIEW

Why You Should?

  1. Coca-Cola has great brand recognition around the world. The company has done a great job of marketing its diverse set of products to billions of people around the world Because of this market exposure, the company has many great growth opportunities and will be able to gain new customers in emerging markets. Customers will also continue to purchase Coca-Cola products.
  2. Coca-Cola is a great dividend play in an investor’s portfolio. The company has a dividend of around 3% or around $1.68 per stock. This dividend amount is great for investors looking for recurring revenue streams and will also benefit the company to gain and maintain investors within the company.
  3. The company has taken an opportunity during the pandemic to divest from brands that were not popular among consumers and reinvested into the business and other more popular brands. As the company has restructured, investors expect the company to grow faster than ever after this pandemic comes to an end.

Why You Should Not?

  1. Coca-Cola has seen lackluster growth over the past couple of financial years due to changing consumer trends. Consumers started to realize the negative impacts of sugary beverages and shifted to the consumption of healthier beverages and snacks. This change in consumer trends has hurt the company and its investors in the past.
  2. The COVID-19 pandemic has hurt the company and continues to negatively markets (India, China, etc.) where the new Delta variant surges. The pandemic caused many restaurants and other large venues to be shut down, something that hurt the demand for Coca-Cola around the world. This also hurt investors in the company.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.