The Coca-Cola Company's (KO -0.83%) roots date back to 1886. John Stith Pemberton, an Atlanta pharmacist, produced the syrup for Coca-Cola. He brought a jug of it to a local pharmacy, where it was combined with carbonated water to produce a soda fountain drink that initially sold for five cents per glass.
NYSE: KO
Key Data Points
While it took Coca-Cola some time to catch on (sales only averaged about nine glasses a day in the first year), it has since grown into a global beverage behemoth. Coca-Cola has built a portfolio of top-selling beverage brands across several categories, including:
- Carbonated soft drinks like Coca-Cola, Sprite, and Fanta.
- Water, sports, coffee, and tea brands such as Smartwater, Vitaminwater, Powerade, and Gold Peak.
- Juice, value-added dairy, and plant-based brands, including Minute Maid, Simply, and Fairlife.
In 2024, Coca-Cola generated $47.1 billion in net revenue by selling its various beverage brands across more than 200 countries and territories. The company expects that number to rise 5% to 6% in 2025.
Coca-Cola has steadily grown its sales and profits, creating wealth for investors along the way. The company's iconic brands and continued growth likely have many people wondering how to invest in its stock. Here's a step-by-step guide to buying shares of Coca-Cola and some factors to consider before investing in the beverage stock.
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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.
- Search for the stock: Enter the ticker or company name 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 I invest in Coca-Cola?
Those considering buying shares of Coca-Cola need to decide whether the company is a good investment for their situation. Here are some factors to consider before adding the beverage stock to your portfolio:
- 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.
Meanwhile, here are some factors to consider that might lead you away from investing in Coca-Cola stock:
- 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 (NYSE:BRK.A)(NYSE:BRK.B), 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.
Here's a closer look at a few more factors to consider before buying shares of Coca-Cola
Is Coca-Cola profitable?
Coca-Cola is a very profitable company. 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.
ETFs with exposure to Coca-Cola
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
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 (more than $70 a share in early 2025). The company might continue to hold off on splitting its stock until shares trade at a higher value.
The bottom line on Coca-Cola
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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