Hello everyone, how is the trading going today? Since Buffet has been talking about his adjustment amid to the current Covid-19 situation, a lot of stocks has dropped today with airline stocks. That makes me thinking whether there would be some stocks that can stay no matter bull or bear market, and Coca-Cola ($KO) is one of the stock I think about.
The company was found in 1886 and has been 133 years in the market. When you think about that the states have been established for 230 years, 133 years is pretty long. Headquartered in Atlanta, Georgia, the company has products sold in 200+ countries across the world.
As for the product lines, most people are familiar with the Coke products, but. Actually Coca-Cola company has a variety of products, including, soda beverages like Coke, Sprite and Fanta, as well as Juice, tea, coffee, and energy drink. That means, if you drink one beverage every day, that probably comes from Coca-Cola company. There are 3500 beverages and 500 beverage brands, if you drank one per day, it would take 9 years to try them all.
From the financial side, the company's revenue and net income grow steadily and have had enough free cash flow in the past 3 years. Due to the current Covid-19 situation, the company has a 3% volume growth, and negative 25% volume in April
From a technical perspective, the stock price has grown continuously since 1962, expect in 2008 financial crisis the stock price dropped to around $20. Since the lowest price in the past 5 years is around $37, my ideal buying price is around $37–$42, as I expect the stock price going lower for the next 2 months.
To sum up, I think $KO is a great stock for stock price growth and dividend yield (3.57%). I believe it would be safe to invest in some sustainable businesses and require less capital, in that case, we can survive well even during the bear market.
Reference:
1. Coca-cola Website:
2. Smart Stock Screener:
https://apps.apple.com/us/app/smart-stock-screener/id1501485233
