How to Buy Coca-Cola Stock Now, Forecast and Dividend
Coca-Cola is one of the world's best-known brands, but is also among the most popular stocks with investors worldwide because of its many qualities - especially its dividend. In this analysis, we'll review why Coca-Cola stock is so popular, detailing its history, price and strengths. We'll also look at the Coca Cola stock forecast and present the best way to buy Coca Cola stock now.
Coca-Cola Stock KO Overview
Coca-Cola stock is listed in the United States on the NYSE. It is also a major component of major US stock market indices such as Dow Jones and S&P 500. Coca Cola stock symbol is KO, and its ISIN code is US1912161007.
The Coca-Cola brand and drink creation history dates back to 1886, but the company was incorporated in 1892. Today, it is the world's largest non-alcoholic beverage company. It covers all segments of the soft drink industry and is present in over 200 countries. The Coca-Cola group also owns more than 500 brands worldwide, including Sprite, Fanta, and Powerade.
Throughout its history, Coca-Cola has been able to adapt its offer to consumer expectations, which fueled the rise of Coca-Cola stock. It has developed lines of sugar-free products, to follow consumption trends away from sugary beverages and towards increasing health conscious trends. This allows Coca-Cola to dominate all markets where it is present. For example, in the United States, Coca-Cola represents 50% of the country's total sales of sparkling soft drinks.
Coca Cola Stock History
This section will focus on the historical evolution of the Coca-Cola stock price. We’ll define the milestones in Coca Cola stock history as well as the long-term chart of the KO stock.
Coca-Cola Stock Evolution
If we refer to the very long-term Coca-Cola chart, we can divide the historical evolution of KO shares in 3 phases. From the early 1990s until 1998, the Coca-Cola share underwent a powerful bullish trend, which allowed it to go from about $4 to over $44. However, KO then showed a downward trend to a low in the $20 area.
In 2007, Coca-Cola stock price started to turn upwards again, its progress got quickly canceled by the 2008 financial crisis. Then, from March 2009, KO stock price has been upward, which we still see in the Coca Cola stock today.
Coca-Cola even marked an all-time high above $60 in February 2020, just before the start of the coronavirus pandemic. However, the fact that KO stock quickly recouped the majority of these losses means that the underlying uptrend has not been challenged, although Coca Cola company stock has yet to return to pre-pandemic levels.
Coca-Cola Stock Price Chart
Let's move on to a more detailed study of the long-term chart of the Coca-Cola stock. For this, we will base ourselves on the monthly Coca-Cola chart. The chart shows that the Coca-Cola stock price is supported by an uptrend line since 2011. We can also see a shorter-term uptrend line since the lows in 2020 due to the covid-19 pandemic.
Note that Coca-Cola stock price has recently taken support from this trend line. This suggests that now could be an ideal time to buy Coca Cola stock. We cannot rule out a return to the pre-pandemic highs in the $60 area in this context. On the downside, the $50 area is the first crucial medium-term support to watch for the Coca-Cola stock.
Why Invest in Coca-Cola Share Now? Points to Consider
Let’s look into fundamental arguments that suggest that Coca-Cola stock price will rise over the next few months and years.
Coca-Cola stock is a bet on the Reopening of the Economy
Coca-Cola's financial results show that the company has rebounded well from a sharp drop in sales at the onset of the covid pandemic. But despite vaccine developments, travel restrictions, lockdowns, and recreational closures remain in place worldwide. This means the Coca-Cola business can still recover further.
Indeed, Coca Cola company stock is one of the few stocks that, despite its upward trend, has not yet returned to its pre-pandemic levels. KO stock thus has room to grow in the future.
KO is one of Warren Buffett's favorite stocks
Warren Buffett is the world's most famous investor, and traders worldwide follow his stock market commentary and financial advice eagerly. Knowing that Coca-Cola is one of Warren Buffett's favorite stocks means a lot. He even opened the position of his fund, Berkshire Hathaway, on this stock in 1988. It is worth noting that Buffett particularly appreciates Coca-Cola for the quality and regularity of its dividends, a point we will come back to in detail later.
Solid financial results for the company
It is also interesting to note that Coca-Cola's financial results have a history of exceeding economists' expectations. In fact, since 2015, earnings per KO share have only disappointed once. Sales, meanwhile, have only disappointed in 4 quarters. Therefore, statistically, there is every reason to believe that Coca-Cola's upcoming financial results will continue to exceed expectations and thus be bullish factors for the Coca-Cola stock price.
Coca-Cola Stock Dividend Information
Coca-Cola stock dividend is often the primary reason investors buy this stock. KO dividend, currently at $0.42 per quarter, represents a yield of over 3%. This is well above the non-alcoholic beverage industry average yield of 2.6%.
More importantly, Coca-Cola stock falls into the very exclusive category of dividend aristocrats, which includes companies that have increased their dividends for decades. This is undoubtedly the case with Coca-Cola, which has increased its dividend yearly for nearly 60 years. Dividend stocks with such regularity are actually very rare.
What’s more, given that crises as important as the financial crisis of 2008, or the coronavirus crisis, did not force Coca-Cola to reduce its dividend, there is a solid chance that the Coca-Cola stock dividend will continue to increase every year for the next decades. This particularity makes Coca-Cola an ideal and even essential stock for income-oriented investors and investors building a portfolio for retirement.
Coca Cola Stock Forecast and Prediction
Let’s now look at the Coca Cola stock forecast and analysts' predictions. To do so, we'll analyze the chart and technical backdrop for Coca-Cola stock.
Coca-Cola share: Financial forecast
Coca-Cola's Q2 2021 results were robust, with EPS of $0.68, an all-time high. Also, revenues exceeded $10 billion for the first time since Q3 2016. Given the analyst forecasts for the next quarters and the margin with which Coca-Cola exceeded the expectations, we have good reasons to expect that the next quarters will give rise to positive surprises for KO stock price.
Coca Cola stock forecast: Analyst opinions
As far as professional analysts' Coca Cola stock forecast are concerned, it is reassuring to see that out of the 14 analysts who follow the stock, 8 recommend buying, and 6 recommend holding. None of them recommend selling. The average target posted by these analysts is close to $62, a target that implies a bullish potential of about 15% from the current price.
It is also interesting to note that none of the analysts has a target below the Coca-Cola stock price today. Finally, note that the highest target among analysts is $65, while the lowest is $59.
Coca Cola stock forecast: Technical analysis
Let's move on to the analysis of the Coca-Cola stock chart, using the weekly KO chart. The chart shows that Coca-Cola stock price is supported by an uptrend line visible since May 2021. This trend line recently stopped a minor correction in KO stock, which began to rebound from it. This technical analysis suggests that now could be ideal to buy Coca-Cola stock.
In this context, the chart suggests that the $60 mark is an ideal first target. On the downside, note that a break below $52 would mean a break below the trendline mentioned above. This would therefore call into question the bullish profile of Coca-Cola stock chart.
Where Can I Buy Coca-Cola Stock?
To invest in Coca-Cola stock, you’ll need to select a good online broker first. This means a broker that is regulated, reliable and gives you access to the tools to trade in the best conditions.
ZFX is a broker which fulfils these conditions, and more. It is highly regulated, offers learning resources and provides MT4, which is the most widely used and popular platform on the market. ZFX also allows you to trade stocks, indices, forex or commodities, at competitive fees.
How to Buy Coca-Cola Stock Easily
Buying Coca-Cola stock through the broker ZFX is very simple and fast. Indeed, you can open an account online, in only a few minutes. Simply follow these steps.
1. Register with ZFX
Start by going to the ZFX website and click on "Open an account". A registration form will appear; fill it in with the required details. Note that your phone number will be verified by SMS.
Then, click on "Next" at the bottom of the page. Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform.
2. Make your first deposit
To do this, click on "Make a deposit" on the screen displayed after registration. You will then be asked to choose a payment method: credit card or bank transfer.
On this screen, indicate your deposit amount, then click on "Confirm Deposit". You will then be asked for your credit card information before the final validation of the payment.
3. Account verification
Finally, proceed with the account verification by sending supporting documents.
As shown in the image above, simply upload the documents directly to the ZFX website.
4. Buy Coca-Cola stock
Once your documents are validated, you can then buy Coca-Cola stock. To proceed, download the MT4 platform provided by ZFX, and login using the details that were sent to you when you registered. You’ll then find Coca Cola stock under KO in your dashboard,
Bottom Line: Should I Buy Coca-Cola Stock Now?
We can conclude that Coca-Cola is a fairly safe stock, and is very popular with long-term investors because of its dividend. Indeed, KO is a member of the exclusive dividend aristocrats club, as it has increased yearly payouts to shareholders for decades. In addition, Coca-Cola's business is robust and geographically diversified, and has proven its expertise in adapting to consumer expectations throughout history.
Moreover, financial and technical forecasts point to a bullish future for Coca-Cola stock prices in the medium term. The charts trend is very bullish, and the return to normalcy of the economy as the coronavirus pandemic is coming to an end could further boost the company's activities.
If you wish to add Coca-Cola stock to your portfolio, you can do so today with ZFX. This highly secure broker offers the MT4 platform, competitive fees, a free demo account and learning resources. It is thus an ideal broker to buy Coca Cola stock and many other trading assets.