Acquisition KO

Coca Cola Company LogoDue to the recent correction in the market I found many companies to choose from to invest my capital. Not sure what happened, but market fell big time. Apparently it was real ugly, or so I have heard. This was actually a perfect opportunity I was looking to hear because I thrive on chaos. Especially when it is in the stock market when emotions are running wild. So I sat back and initiated a trade. Here it is.

This next company has been refreshing America for over 127 years. Coca-Cola is vastly diversified beverage company that owns and markets nonalcoholic beverage brands. Majority are carbonated beverages, but also wide range of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas, coffees, energy and sports drinks. With the most popular brands being Coca-Cola, Diet Coke, Fanta, and Sprite, the company has been selling these products stronger then ever.

KO is also a great dividend growth investing type of company that reward their shareholders. It has increased it’s dividend for 51 years now and I don’t see that coming to a halt.

  • Dividend Yield: 3%
  • Dividend Growth 5yr: 8.5%
  • Payout Ratio: 53%
  • P/E: 19.4

I purchased 28 shares for the price of $38.06 adding $31.36 to my annual income.

The 12-month dividend income increased to $2,209.

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4 Comments

  1. Matt on February 8, 2014 at 14:56

    Good buy here Vet. I like the fact that Coke just partnered with Green Mountain to come out with cold drinks in their Keurig system. With the popularity of Keurig already, it’s a great opportunity for Coke to expand their reach. It’s an exclusive deal too so PEP can’t get into it for a while. I’m long 100 shares of KO at 37.50.

    Good Luck!

    • DividendVet on February 9, 2014 at 02:50

      Yeah, I saw that. I think it is great they are expanding into different type of drinks, in this case coffee. Which will only diversify the company even more.

      Cheers!

  2. Captain Dividend on February 12, 2014 at 04:47

    Great buy, I made my first entry in to Coke this week as well at about the same price as you. Very attractive here with a 3% yield and a div increase on the horizon.

    • DividendVet on February 12, 2014 at 17:20

      Likewise, I think Jason at Dividend Mantra did a great job analyzing the company a few weeks back. KO has a long track record of raising dividends for their shareholders.

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