#4 - Coca-Cola (NYSE:KO)
Coca-Cola (NYSE:KO) is another stock that has to be included in the conversation of cash rich companies. In its most recent quarter, the company generated over $4 billion in FCF. In context, the company generated approximately $11.2 billion for all of 2021. The company has had no problems increasing its dividend when its free cash flow was at much lower levels so I see no reason that its streak of 60 years of dividend growth will be ending anytime soon.
The company has moved beyond its signature line of carbonated beverages to include juices, teas and coffee. All of those will work together to grow revenue and earnings over the next five years. And that will keep the company’s cash position in good shape.
The stock does trade over 22x earnings which may cause hesitation in some investors who don’t already have a position in the stock. But in terms of safe stocks, they don’t look much better than KO stock.
About Coca-Cola
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores.
Read More - Current Price
- $71.62
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 12 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $71.07 (0.8% Downside)
