Coca-Cola (KO)!
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Coca-Cola (KO)!
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02-21-2014, 12:16 AM
(02-20-2014, 05:20 PM)hendi_alex Wrote: That disagreement is what makes a market! KO traded at a PE of around 33 at the beginning of 2004, which is roughly 50% higher than its typical PE and yielded just 2%. So even by overpaying by 50% you were still able to beat the market's returns over the last decade. Now its trading below at a 20 PE and yielding nearly 3.3%. Long KO. 
02-21-2014, 08:34 AM
Consumer tastes have made a dramatic shift, away from carbonated drinks. Some are saying that is a permanent shift as consumers choose more healthy alternatives. For sure that dynamic adds to the uncertainty faced by Coke which has only modestly performed over the past decade, as compared to the previous decade. Just for the fun of it, I typed in several tickers semi randomly, picked from big cap list and picked from my portfolio. Here is how they compared to KO over the past decade.
T - beat KMP - crushed XOM - beat RYN - crushed CSCO - significantly under performed POT - crushed EMR - beat MCD - crushed I may use KO as an occasional covered call play, but doubt that I'll ever hold it in my long term dividend portfolio.
Alex
08-12-2014, 07:54 AM
(02-20-2014, 01:51 PM)hendi_alex Wrote: Yes, it gave a 9% raise, but that is in the context of the company which was only paying something kin to minimum wage. Your day job probably pays so much more than minimum wage, that even a 2% raise does you more good than the 'gift' from coke. I just have such a hard time getting excited about 3% yielding stock. I love 3% yield stocks with steady mid-high single digit dividend increases. Those constitute the core of my dividend growth portfolio. Not that I do not have some higher yielding medium dividend growth stocks, I do. 
09-19-2014, 01:34 PM
DPS 33x normal option volume today. KO 2.5x ... news next week?
09-19-2014, 02:12 PM
09-19-2014, 09:51 PM
Hmm, that does pose some interesting questions.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
10-23-2014, 07:58 AM
10-24-2014, 07:01 AM
M* analyst on KO,MCD, & GE http://www.morningstar.com/cover/videoce...?id=669765
10-24-2014, 09:53 AM
KO (and PEP) has been missing from my portfolio. I wasnt crazy about the way execs rewarded themselves earlier this year, but I believe there were changes announced to taht plan recently. I need to read a bit more deeper into it.
2015 is being called a transition year by the company...so, I will be looking for more weakenesses in teh coming year to finally add KO to my portfolio. Still a high P/E for my taste at current levels.
10-24-2014, 09:58 AM
(10-24-2014, 09:53 AM)Roadmap2Retire Wrote: KO (and PEP) has been missing from my portfolio. I wasnt crazy about the way execs rewarded themselves earlier this year, but I believe there were changes announced to taht plan recently. I need to read a bit more deeper into it. I would recommend looking into Dr. Pepper Snapple (DPS) as well. They are the small player compared to the two others, but a very shareholder friendly company. I own it, but it is currently a bit overpriced so I don't know that I would buy it now. Its one worth keeping on your radar though. The recent conference call transcript on Seeking Alpha gives some good color from management on how they look at providing shareholder returns.
10-24-2014, 10:09 AM
Thanks Eric. I will add it to my watchlist and do some more research on DPS.
regards |
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PS): Q3 EPS of $0.98 beats by $0.10.