Monday, December 29, 2014

Why I'll Continue Holding Shares Of Coca-Cola Co

Shareholders of The Coca-Cola Co have had a rough couple years watching rising compensation packages for officers, while sales remain stagnant. I took a recent look and what I see is concerning, but I'm not about to let go yet.
Here's an excerpt from an article published on Seeking Alpha. You can read it here, and the rest of my recent articles at Seeking Alpha here.

With a 52 year track record of annual increases, the current dividend yield at The Coca-Cola Co. (NYSE:KO) should be as safe as houses. Of course, to a dividend growth investor, holding steady isn't nearly as important as steady increases.
From year-end 2009 through year-end 2014 - five years - the company's dividend has risen at a compound annual growth rate (CAGR) of 8.27%. Applying fellow Seeking Alpha contributor Chowder's rule, the sum of its current dividend yield of 2.84% and its five-year CAGR is just below the magic number of 12. I feel a Chowder score of 11.11 isn't necessarily a DGI dealbreaker when applied to a first rate company like Coke. However, the company's gloomy outlook is troubling.

Read the complete article at Seeking Alpha, here.