Why Coca-Cola Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, soft-drink behemoth Coca-Cola (NYSE: KO)has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Coca-Cola and see what CAPS investors are saying about the stock right now.

Coca-Colafacts

Headquarters (founded)

Atlanta, Ga. (1886)

Market Cap

$175.2 billion

Industry

Soft drinks

Trailing-12-Month Revenue

$48.0 billion

Management

Chairman/CEO Muhtar Kent

CFO Gary Fayard

Return on Equity (average, past 3 years)

32.3%

Cash/Debt

$16.6 billion/$32.6 billion

Dividend Yield

2.9%

Competitors

Dr Pepper Snapple Group

Pepsico


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 6,689 members who have rated Coca-Cola believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, NewAlchemist, tapped the stock as a particularly solid income opportunity:

Has rewarded shareholders with rising dividends for 50 straight years making Coca-Cola a dividend champion of champions. A 52% payout ratio and rising earnings leave room for further dividend increases. ...

The company brand is at iconic levels. People collect antique and [Coca-Cola] memorabilia. The product is relatively cheap and inexpensive. Countries get protectionist and slap tariffs and quotas on cars and other industries but not cheap soft drinks. [Coca-Cola] continues to expand internationally.

But while there is absolutely no question that Coca-Cola has been great to long-term shareholders, the company faces some new threats to its continued market dominance. Luckily, we've recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you'll want to click here now and get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Coca-Cola Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of PepsiCo. It also recommends Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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