The Coca-Cola Company's (KO +1.64%) is one of the world’s biggest beverage companies, selling hundreds of brands in 200+ countries. Its scale, steady cash flow, and long dividend track record are why many investors consider it a classic “buy-and-hold” stock.
Here’s how to buy Coca-Cola shares, and what to weigh before you invest.
How to buy Coca-Cola stock
To buy shares of Coca-Cola, you need a brokerage account. If you need to open one, these are some of the best-rated brokers and trading platforms. Here's a step-by-step guide to buying Coca-Cola stock:
- Open your brokerage app: Log into your brokerage account where you handle your investments.
- Fund your account: Transfer money so you’re ready to invest.
- Search for Coca-Cola: Enter the ticker symbol "KO" into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should you invest in Coca-Cola?
Those considering buying shares of Coca-Cola need to decide whether the company is a good investment for their situation.
Reasons to consider it
- You love Coca-Cola's products and want to invest directly in its stock.
- You believe Coca-Cola will continue growing its revenue and earnings as it captures rising demand for beverages worldwide.
- You think the company can outperform the S&P 500 over the long term.
- You want to earn dividend income.
- You're seeking to invest in a more mature company that should have a less volatile share price.
- You understand the risks, including the possibility that Coca-Cola stock could lose value.
Reasons to be cautious
- You're not a fan of Coca-Cola's products or want to avoid companies that sell sugary drinks.
- You don't have time to actively invest in stocks and monitor a diversified portfolio.
- You're seeking to invest in a more diversified food and beverage company than Coca-Cola.
- You already own shares of Berkshire Hathaway (BRK.A -0.30%)(BRK.B -0.13%), which has a sizable stake in Coca-Cola.
- You don't need dividend income.
- You're a younger investor seeking a company that can grow profits faster than Coca-Cola.
NYSE: KO
Key Data Points
Is Coca-Cola profitable?
Coca-Cola is a very profitable company, driven by the sheer breadth of what Coca-Cola owns, from global beverage brands to stakes in key bottling partners.
In 2024, the beverage giant hauled in $47.1 billion of net revenue, a 3% increase from the previous year. The company produced slightly more than $10.6 billion of net income, or $2.47 per share. Its net income was down from the previous year (1% on an absolute basis and by $0.01 per share) due to foreign exchange headwinds.
Coca-Cola also produces a lot of cash. It generated $6.8 billion in cash flow from operations in 2024 and $4.7 billion in free cash flow (and $10.8 billion after excluding the impact of IRS tax litigation). The company's cash-generating ability enabled it to invest in growing its business while returning money to shareholders through dividend payments ($8.4 billion) and share repurchases ($1.1 billion).
Although Coca-Cola's profits declined in 2024, it has a long history of earnings growth. The company's comparable earnings per share have grown at a more than 7% average annual rate since 2010, helping steadily drive the stock price higher in recent years:
Coca-Cola expects earnings to resume their growth trajectory in 2025 and beyond. The beverage giant estimated its comparable earnings per share would rise by 2% to 3%. Meanwhile, it set a long-term target of growing its earnings per share by 7% to 9% per year. That earnings growth should help increase the company's stock price value while allowing Coca-Cola to continue raising its dividend.
Does Coca-Cola pay a dividend?
Coca-Cola has a long history of paying dividends. In early 2025, the beverage giant increased its dividend by 5.2%, marking the 63rd straight year of dividend increases. That kept the company in the elite group of Dividend Kings, companies with 50 or more years of consecutive dividend growth.
The company also offered an attractive dividend yield. As of early 2025, Coca-Cola's dividend yield was approaching 3%, roughly double that of the S&P 500. The beverage company's attractive yield and steady dividend growth make its stock ideal for income-focused investors like retirees.
How to invest in Coca-Cola through ETFs
Investors interested in Coca-Cola have alternatives to buying shares directly. They could also consider passively investing in the beverage stock through a fund that holds its shares.
Coca-Cola is one of the larger companies by market capitalization. The iconic company is in several stock market indexes, including the Dow Jones Industrial Average and S&P 500 index. As a result, index funds and exchange-traded funds (ETFs) that benchmark their returns against those indexes hold Coca-Cola, making it a widely held stock.
Dividend Yield
According to ETF.com, 772 ETFs held almost 709 million shares of Coca-Cola as of late 2025. S&P 500 index funds and ETFs were among the largest holders, led by the Vanguard Total Stock Market ETF (VTI +0.66%). The fund held more than 108.29 million shares. However, Coca-Cola was only its 37th-largest holding at 0.35% of the fund's total, so there are better ways to gain passive exposure to Coca-Cola.
Several ETFs focus on consumer staples stocks, giving them a more meaningful allocation to Coca-Cola. The iShares U.S. Consumer Staples ETF (IYK +0.89%) has the largest allocation to Coca-Cola at 11.52%.
Another alternative to directly buying shares of Coca-Cola is to consider investing in Berkshire Hathaway, which has a significant stake in the company. It was one of Warren Buffett's largest stock holdings in early 2025. Berkshire owned 400 million shares of Coca-Cola (9.3% of its outstanding shares). Those shares were worth more than $28.5 billion, making them Berkshire's third-largest holding at 9.9% of its investment portfolio.
Will Coca-Cola stock split?
Coca-Cola didn't have an upcoming stock split on the docket as of early 2025. However, the company has completed several stock splits throughout its history. Here's a look at the company's stock splits over the years and how many shares an investor would now hold if they bought one share at its initial public offering in 1919:
Record data | Activity | Cumulative shares |
|---|---|---|
9/5/1919 | IPO | 1 |
4/25/1927 | 1-for-1 Stock Dividend | 2 |
11/15/1935 | 4-for-1 Stock Split | 8 |
1/22/1960 | 3-for-1 Stock Split | 24 |
1/22/1965 | 2-for-1 Stock Split | 48 |
5/13/1968 | 2-for-1 Stock Split | 96 |
5/9/1977 | 2-for-1 Stock Split | 192 |
6/16/1986 | 3-for-1 Stock Split | 576 |
5/1/1990 | 2-for-1 Stock Split | 1,152 |
5/1/1992 | 2-for-1 Stock Split | 2,304 |
5/1/1996 | 2-for-1 Stock Split | 4,608 |
7/27/2012 | 2-for-1 Stock Split | 9,216 |
As that table shows, Coca-Cola has split its stock many times over the years. However, it hasn't completed a split in more than a decade. While shares have increased in value by more than 75% since the stock's last split, they still traded at an accessible price (hovering around $60-70 a share in late 2025). The company might continue to hold off on splitting its stock until shares trade at a higher value.
The bottom line
The Coca-Cola Company has grown from humble beginnings into a global beverage giant. The company expects to grow its earnings steadily in the coming years. Rising profits should help increase its stock price while allowing Coca-Cola to continue increasing its dividend, making it an attractive stock to buy for the long term.
However, Coca-Cola stock isn't for everyone. Investors need to ensure it's the right fit for their portfolio before buying shares.
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