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The Coca-Cola Company's (NYSE:KO) 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.
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:
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.
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:
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:
Meanwhile, here are some factors to consider that might lead you away from investing in Coca-Cola stock:
Here's a closer look at a few more factors to consider before buying shares of Coca-Cola
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.
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.
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.
According to ETF.com, 314 ETFs held almost 450 million shares of Coca-Cola as of early 2025. S&P 500 index funds and ETFs were among the largest holders, led by the SPDR S&P 500 ETF Trust (NYSEMKT:SPY). The fund held more than 48 million shares. However, Coca-Cola was only its 26th-largest holding at 0.6% 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 (NYSEMKT:IYK) has the largest allocation to Coca-Cola at 11.2%.
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 it Berkshire's third-largest holding at 9.9% of its investment portfolio.
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:
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 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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