Summary
A recent article on SA calls the share price of KO too high.
How is Coke doing in the latest reported quarter?
The dividend is still safe and will likely go up 2 cents a share at the start of next year.
Given the dividend stream Coke pays, the current share price is still a good deal for dividend growth investors.
I recently read Christopher Price’s article on Coca-Cola (KO) where he concluded that KO is priced too high for him (or too rich for his blood as he puts it). That caused me to take another look at Coke, which I haven’t really looked at in about a year. I reach a very different conclusion based on the current dividend and what I expect future dividends to be.
What did I think last time?
It’s been just about a year since I last wrote about Coke. I haven’t written about it because not much has really changed. So an article would have been boring. Boring is not a bad thing for an investment, but not so good for an article about an investment. Excitement, for an investment, so often means trouble. Safe is most often quite boring. But with the passage of a year and some questioning if the price is too high, there is something interesting to write about Coke.
