Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Coca-Cola Co (KO)’s Growth Potential & Dividend Analysis

The Coca-Cola Co (NYSE:KO) is the largest seller of non alcoholic beverages in the world.

The company has had a great run.  It is a Dividend King with an amazing 54 consecutive years of dividend increases.

There’s no doubt Coca-Cola has generated tremendous growth since being founded in 1892.

Some investors think Coca-Cola’s growth days are over

That is not the case.


Coca-Cola is benefiting from the growing global beverage industry more than any other company.

The worldwide beverage industry (excluding the US) is expected to increase in value by $300 billion from 2014 to 2020.

Coca-Cola has 30% market share of the global beverage industry.  If the company maintains its global market share up to 2020, it will add $90 billion to its market cap based on the expected increase in global beverage value.

Coca-Cola had a market cap of ~$150 billion at the beginning of 2014. This gives the company an expected compound growth rate of 6.9% (not including dividends and share repurchases) up to 2020…  If the company does not gain any market share.

I believe Coca-Cola will continue to gain market share and reward shareholders with share repurchases and dividends.  This will drive up the company’s growth rate into the double-digits for the next several years.

Among the investors tracked by Insider Monkey, a total of 51 funds own shares of Coca-Cola as of the end of 2015, down by 54 funds a quarter earlier. However, the aggregate value of their positions went up to $20.29 billion from $19.33 billion during the last quarter of 2015 and represented 10.90% of the company. The largest shareholder of Coca-Cola is Warren Buffett’s Berkshire Hathaway, which owns 400.0 million shares worth $17.18 billion, according to its last 13F filing.

Well Positioned for International Growth

Coca-Cola has positioned itself very well to take advantage of growing non-alcoholic beverages worldwide.

The image below shows the company’s strong competitive position around the world.
Coca-Cola Worldwide

As per capita income increases in Eurasia, Africa, and the rest of the developing world, Coca-Cola stands to gain.

Beverage Industry Growth & Rising Per Capita Income

Rising personal income throughout the world gives consumers more disposable income to purchase non-essential items like Coca-Cola.

Coca-Cola is enjoyed on a per capita basis much more in some countries than in others.  This gives Coca-Cola the opportunity to focus on countries with low levels of per capita consumption as the market is less saturated.

About 50% of teens and young adults have not enjoyed a Coca-Cola in the last 30 days.  Coca-Cola still has a long growth runway ahead.

Follow Coca Cola Co (NYSE:KO)
Trade (NYSE:KO) Now!

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.