Growing with Low Dividend (Part 2)

2. Coca-cola Co (KO) ‌$Coca-Cola(KO)$‌

KO is arguably the world's most dominant beverage company. It claims to have a 14% market share of all commercial beverage sales in developed markets and 6% in emerging markets. That may not seem like much, but this is a remarkable figure considering the vast universe of beverage products, including water, juice, tea, soda, and more.

Currently, management expects the business to grow revenue by 4% to 6% per year. This is refreshing after the past decade, though KO is likely past its best growth years. Moreover, the company's dividend is arguably its most famous investment trait. Longtime shareholders have enjoyed decades of dividend payments that increase every year. KO is a Dividend King that has increased its payout for 60 consecutive years, one of the longest streaks of any public company. Investors can get a dividend yield of just under 3% at the current share price, which can either be in the form of money or reinvested to buy more shares to earn more dividends in the future.

If the company grows at the pace management is hoping for which is 4% to 6%, investors can expect total returns in the 10% to 12% range based on EPS growth and a 3% dividend yield. KO is a slow and steady stock that seems poised to do what it's already been doing for decades.

KO’s highest stock price in history was USD 67.2 per share (25th April 2022) and it is currently trading at USD 59.07 (16th of June 2022). Approximately 12% difference from the all time high.