Coca-Cola (KO)!

[hendi_alex]

Looks like some of you may get a better price today. Currently down over a dollar per share. People continue to move away from carbonated soft drinks. Said sales were up 1% worldwide mostly because of increased sales of bottled water and sports drinks, according to Bloomberg.

[Kerim]

(02-18-2014, 09:34 AM)hendi_alex Wrote: Looks like some of you may get a better price today.

Indeed. Just bought 50 shares at $37.42. I'll gladly grab a 4 percent dip on one of the best names in the world. Not at all worried about KO's long term prospects. Could it go lower? Sure. And I'd just buy some more.

This is my best-yielding pile of KO yet!

[hendi_alex]

After looking a little closer at coke, have decided that sugar drinks and carbonated drinks just represent a portion of this giant's activity. Further, individuals have the ability to 'vote' via purchases, thus have the power to transform the company's products over time. For some time consumers have been voting 'no' to these unhealthy choices. While that trend is hurting the bottom line, IMO Coca-cola has begun and will continue to transform itself, to provide a wide array of healthy alternatives. Also, KO, has a history of being a 'good' corporate neighbor in its foot print all across the world. So have decided that knee jerk, emotional response to main beverage lines is out of bounds with guidelines for any personal sanctions.

Next on the list, to look at a little more closely, is Monsanto. Am reading more and more things that I find to be quite disturbing, relating both to GMO introductions, and related to bullying of customers, especially in under developed counties.

[Be Here Now]

Interesting article in Bloomberg today. Not all talk about KO is happy. http://www.bloomberg.com/news/2014-02-19...-year.html

[hendi_alex]

KO is looking like a decent, low risk covered call play to me. Buy at $37.30 and sell August calls for $1.10. Shares should kick out at least 84 cents in dividends before expiration. Plus skim about 70 cents in capital gains if called. Gross about 7% if called in August. Juice the annual yield to over 5% if not called.

[TomK]

KO increases dividend from .28 per quarter to .305 per quarter. Almost a 9 percent raise. Not too shabby for a company in decline.

I'm working my ass off and I can't even dream of a 9 percent raise at my job. Meanwhile my KO shares give me that raise just because I'm a nice guy.

[hendi_alex]

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.

[TomK]

Well, sure, a 2% raise on a large base is more dollars than a 9% raise on a small base. But, if all goes to plan, there will come a day when the income I receive from my stock portfolio is close to or more than the income I receive from my labor. At that point, the bases will be the same, and the dividend raises I get will make my salary increases seem shabby in both percentage and absolute terms.

I agree that 3% is not that exciting, but I am convinced that dividend growth also entails price appreciation, and that when you allow those to do their work for a long period of time, you're going to do well.

[hendi_alex]

I'm hoping that kind of math works for everyone. Plus as some have said, at retirement time there can always be a transition of some holdings that have modest dividends (but have large capital gains) into more traditional income stocks. I'm convinced that over a long time frame that the DG types of stocks will give a greater total return than many of the traditional income stocks such as utilities and telecoms. As one nears retirement however, the risk of a prolonged and severe down market is too great to not have a decent allocation into the higher yielding, lower growth domain.

[rnsmth]

(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.

A company that has given raises for decades.

I disagree with your contextual statement, particularly given the many stock splits over the past decades.

[hendi_alex]

That disagreement is what makes a market!

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Ten year total return is not overly impressive to me.

[rnsmth]

KO 5-year dividend growth rate - 8.1%

I like that kind of pay raise - and KO has been pretty consistent over the years.

I am looking for reliable growth in income more than I am in total return. Add a second layer of compounding by reinvesting the dividends, and I am a happy camper. It is one of my lower current dividend yield stocks, but it has a place in my portfolio.

KO just announced a 9% dividend increase today - that is about 3 times the inflation rate.

That's what I am talking about