Where Will Coca-Cola Stock Be in 3 Years?

• Coca-Cola is 1 of the astir unchangeable businesses around, making it a harmless investment.

• The beardown marque supports pricing power, precocious profits, and a rising dividend.

• The beverage giant’s shares person underperformed the S&P 500 successful the past 3 years.

• 10 stocks we similar amended than Coca-Cola ›

It's intolerable to overstate conscionable however overmuch Coca-Cola (NYSE: KO) dominates the worldwide marketplace for brushed drinks. It sells much than 200 antithetic beverage varieties. Its products are disposable successful implicit 200 countries and territories. And a whopping 2.2 cardinal servings of its drinks are consumed each azygous day. This is simply a elephantine successful the industry.

That's an denotation of the spot of the company. Buy wherever volition this beverage stock beryllium successful 3 years?

Coca-Cola operates successful the boring and mature satellite of brushed drinks. Therefore, its concern isn't undergoing accelerated and unpredictable change. It's a dependable performer that tin adhd stableness to concern portfolios.

Three years from now, the institution volition look astir identical to the mode it does today. The champion portion is that shareholders don't request to interest themselves with economical growth, involvement rates, oregon geopolitical tensions. Demand for Coca-Cola products is durable.

Wall Street statement expert estimates telephone for gross to summation astatine a compound yearly maturation rate of 3.8% betwixt 2024 and 2027. This is simply a tenable outlook, successful my opinion. And it's astir apt the gait that Coca-Cola volition turn implicit the agelong term.

The cardinal to Coca-Cola's enduring occurrence is its brand, which supports its economic moat. This is possibly Warren Buffett's favourite quality, arsenic helium built up Berkshire Hathaway's portfolio to ain galore businesses with beardown brands, including the beverage giant.

Thanks to accordant merchandise quality, planetary distribution, and effectual marketing, Coca-Cola's marque dominates the market. And it drives pricing power. The concern isn't selling markedly higher portion volumes implicit time. However, it tin complaint higher prices that don't curb demand.

This leads to tremendous profits. Coca-Cola reported a stellar nett net borderline of 30% successful Q3 (ended Sept. 26). Capital requirements to reinvest successful the concern are low, truthful absorption tin wage dividends that full $0.51 per stock each quarter. If the inclination continues, 2026 volition beryllium the 64th consecutive twelvemonth that the board of directors approves a dividend payout hike, which is an unbelievable way record.

In the past 3 years, Coca-Cola has produced a full instrumentality of 31% (as of Jan. 21). The S&P 500 has enactment up a full instrumentality much than treble that, astatine 79%. This is simply a tiny illustration of what investors tin expect. In different words, Coca-Cola isn't going to beryllium a marketplace outperformer.