With the presence of sales in more than 200 countries and regions worldwide, as well as top drink options like soft drinks, slave water, and Powarde Sports Drink, among many others, Coca Cola (NYSE: KO) Surely there is a domestic name. Its long -term success and relevance has helped to create a business that is currently $ 309 billion.

But this top can invest $ 10,000 today Drink stock Finally make you a millionaire? Continue reading to learn more about Coca-Cola’s investment qualifications.

Coca-Cola is a high quality business

One of the main reasons is that this company is probably on your radar, it is a high quality enterprise. For the beginning, Coca-Cola is one of the strongest and most recognizable brands in the world. It has been developed over a century to satisfy customers and give a consistent product.

Company Brand Helps support it Pricing powerJust in the latest quarter (the second quarter ended on June 28), Coca-Cola posted 3% net revenue growth, but it was offset by the management team by the management team. Customers definitely have loyalty to the company’s products.

I will also draw attention to the financial situation of Coca-Cola. It is a very beneficial business. In the last decade, its operating margin has performed 26.6%brilliant. This leads to a tremendous free cash flow that supports a consistent dividend (more on it).

Coca-Cola is operated in a mature, boring and stable industry. The most clever and most funded entrepreneurs are not really hard to disrupt the market. But this is a good thing. This means that this is almost no danger of business disruption. If we look out after 50 years from now, there is a very high probability that Coca-Cola will still be over the industry.

There are not many investors who will argue against the approach that Coca-Cola is a wonderful business. Even Warren Buffett agrees. Berkshire HathawayHe runs a massive group, owning 9.3% of the outstanding shares of the drink veteran. It has been a position in the portfolio for a very long time and produces heavy dividend payments every year. This certainly provides a seal of approval to anyone to scoop the Coca-Cola Stock.

Coca-Cola’s return capacity

Coca-Cola’s high level of frequent profitability supports its 2.7% dividend yieldBusiness has actually increased its payment to leave 62 straight years jaws. The consistent dividend provides a stable source of income to investors. And it helps in contributing to the return capacity of stock.

However, there is another factor evaluation to consider. As this writing, the stock trades the price-to-I ratio of 29.1. It represents a premium for the average of the last five years. And it is 21% more expensive than the overall S&P 500 Acquisition.

Paying the current assessment makes sense, but only if you believe that the Coca-Cola will move its lower line faster. It is easy to doubt in this regard. In the last decade, its earnings per share have climbed at an annual rate of only 2.7%. It is a low-development business that operates in a very mature industry. Therefore, investors should keep in mind where the return will come from being the owner of this stock.

In the last five years, Coca-Cola produced a total return of 54%. For comparison, the S&P 500 would have more than doubled your initial capital outlay. I do not see any reason that we expect to change the underperformance of the S&P 500 company to look forward.

Coca-Cola, a five-year annual return of the Coca-Cola continues indefinitely, it will take more than 50 years for $ 10,000 capital outlay, which will turn to $ 1 million. Therefore, it is best for investors to see elsewhere if hope has to go to the seven-day club in a more appropriate time limit.

Should you currently invest $ 1,000 in Coca-Cola?

Before buying stock in Coca-Cola, consider this:

Micker Flower Stock Advisor The analyst team identified what they believe 10 best stock For investors now to buy … and Coca-Cola was not one of them. Cutting 10 stocks may produce demons returns in the coming years.

When to consider Nvidia This list was made on 15 April 2005 … If you have invested $ 1,000 at the time of our recommendation, You will have $ 728,325,