Is Coca-Cola stock a buy right now?
Coca-Cola (KO) continues to demonstrate remarkable stability and enduring appeal for investors, with its shares trading near USD $62 at the time of writing and an average daily trading volume hovering close to 14 million shares. Recent quarterly results have underscored the company’s resilience to inflationary pressures, with organic revenue growth driven by robust demand across North America and emerging markets. Notably, Coca-Cola announced a new sustainability initiative to reduce plastic waste, which may subtly influence long-term brand perception and operating costs but is unlikely to disrupt near-term financial performance. Market sentiment toward KO remains decidedly constructive; investors are drawn to its consistent dividend growth, global brand leadership, and strong cash flow generation. The beverages sector as a whole is being viewed as a defensive investment, particularly relevant for Canadian investors seeking diversification amidst uncertain macroeconomic conditions. According to the consensus of more than 32 national and international financial institutions, Coca-Cola’s target price is set at $80, reflecting broad-based confidence in the company’s fundamentals and future prospects. Retail investors may find Coca-Cola an attractive candidate as part of a balanced portfolio oriented toward quality and stability.
- Uninterrupted dividend growth for over 60 years, making it a Dividend Aristocrat.
- Global brand recognition with presence in more than 200 countries.
- Strong pricing power, enabling consistent revenue growth despite inflation.
- Solid free cash flow supporting ongoing share buybacks and dividend payments.
- Agile adaptation to consumer trends, including new zero-sugar and functional beverages.
- Currency fluctuations can affect earnings given extensive international operations.
- Modest growth outlook compared to high-growth tech or emerging sector stocks.
- What is Coca-Cola?
- How much is Coca-Cola stock?
- Our full analysis on Coca-Cola </b>stock
- How to buy Coca-Cola stock in Canada?
- Our 7 tips for buying Coca-Cola stock
- The latest news about Coca-Cola
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been closely monitoring Coca-Cola’s performance for over three years. Every month, hundreds of thousands of users in Canada rely on us to break down market trends and highlight the best investment opportunities. Our analyses are intended solely for informational purposes and do not constitute investment advice. In line with our code of ethics, we have never been, and will never be, compensated by Coca-Cola.
What is Coca-Cola?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | Coca-Cola is a US-based multinational beverage corporation, widely recognized worldwide. |
| 💼 Market | NYSE: KO | Listed on the New York Stock Exchange; easy access for global investors, including Canada. |
| 🏛️ ISIN code | US1912161007 | This unique ISIN identifies Coca-Cola shares on global financial markets. |
| 👤 CEO | James Quincey | Quincey has led Coca-Cola since 2017, focusing on diversification and global expansion. |
| 🏢 Market cap | ~$265 billion (June 2024) | A high market cap shows stability and investor confidence in strong, global brands. |
| 📈 Revenue | ~$45 billion (2023) | Robust revenue supported by diversified beverage portfolio and resilient global demand. |
| 💹 EBITDA | ~$13 billion (2023) | High EBITDA reflects solid profitability and efficient operational management. |
| 📊 P/E Ratio (Price/Earnings) | ~24 (June 2024) | A P/E near sector average, signaling fair valuation versus peers in a defensive sector. |
How much is Coca-Cola stock?
The price of Coca-Cola stock is rising this week. As of now, KO is trading at $62.41 USD, up +0.75% over the last 24 hours and +1.8% over the past week. The company holds a strong market capitalization of $269.2 billion, with a 3-month average trading volume of 12.1 million shares. Coca-Cola has a P/E ratio of 26.7, an attractive dividend yield of 3.09%, and a stock beta of 0.59, indicating lower-than-average volatility. With its resilient performance and consistent dividends, KO remains a compelling option for Canadian investors seeking stability.
Compare the best brokers in Canada!Compare brokersOur full analysis on Coca-Cola stock
Having reviewed Coca-Cola’s latest quarterly earnings, scrutinized the stock’s performance trajectory over the past three years, and synthesized a diverse set of analytical perspectives—including key financial ratios, technical patterns, sector data, and a peer benchmark through our proprietary framework—we present a comprehensive review of The Coca-Cola Company (NYSE: KO). As the beverage industry demonstrates resiliency amid shifting macroeconomic tides, and as Coca-Cola continues to innovate within its iconic brand portfolio, we ask: Why might Coca-Cola stock once again become a strategic entry point into the global consumer staples sector in 2025?
Recent Performance and Market Context
Over the past three years, Coca-Cola shares have demonstrated exceptional resilience, with the stock trading in a tight range given broad market rotation and the impact of heightened inflation. As of June 2024, KO trades around $61.50 per share, up roughly 5% year-to-date and rebounding sharply from 2023’s minor drawdown, which mirrored sector-wide defensive measures. Notably, in Q1 2024, Coca-Cola reported revenue growth of 3%, outpacing many traditional consumer staples peers amid challenging cost environments.
Several positive drivers merit attention:
- Robust Q1 Earnings: Coca-Cola beat consensus estimates, with net revenues reaching $11.3 billion, surpassing projections and evidencing strong volume growth, particularly in emerging markets and North America.
- Shareholder Returns: The Board authorized a dividend boost—Coca-Cola’s 62nd consecutive annual increase—reinforcing management’s confidence and the defensive nature of KO as an income vehicle.
- Sector Tailwinds: The return of global travel, normalization of out-of-home consumption, and secular trends (notably in no-sugar/small-pack beverages) present a more favorable backdrop than during the pandemic years.
Furthermore, the U.S. Federal Reserve’s dovish tilt is improving risk appetite and supporting defensive yet fundamentally attractive stocks like KO. As consumer staples rotate back into focus for institutional allocators, Coca-Cola’s blue-chip status is increasingly prominent.
Technical Analysis
From a technical standpoint, Coca-Cola exhibits several bullish signals:
- Relative Strength Index (RSI): As of June, KO’s RSI hovers near 54, suggesting neither overbought nor oversold conditions. This neutral-to-bullish setup often precedes upside in large-cap, low-beta stocks.
- Moving Averages: The stock has reclaimed the 50-day moving average ($60.80) and is trading sustainably above the 200-day moving average ($59.10), highlighting positive momentum and potential for a continued breakout.
- MACD (Moving Average Convergence Divergence): The MACD histogram turned positive in late May, reflecting an emerging medium-term uptrend after a consolidation phase.
- Support and Structure: Technical support is clearly established in the $58–$59 range—a level tested and defended multiple times in the past 12 months. This zone offers a favorable risk-reward for new entry. Meanwhile, minor resistance is observed at $62, and a breach could pave the way to the 52-week high near $64.
Overall, the chart structure suggests Coca-Cola is entering a new constructive phase, supported by underlying volume and institutional buying at technical inflection points.
Fundamental Analysis
Coca-Cola’s underlying business continues to showcase the characteristics of a global compounder and defensive growth play:
- Revenue and Profitability: For Q1 2024, organic revenues grew by 11%, with reported operating margins of 31%. EPS rose to $0.72, slightly surpassing consensus. Free cash flow remains robust, providing ample flexibility for ongoing investments and continued shareholder returns.
- Valuation: KO trades at a forward P/E of 23.5x (vs. a 10-year average ~25x), and a PEG ratio of about 2.8. While not aggressively cheap, this valuation appears entirely justified given its sector leadership, unparalleled distribution, and recession-resistant business model. The company also boasts a price-to-sales ratio of 6.6x, in line with industry giants, supported by premium brand equity and persistent demand.
- Strategic Expansion and Strengths:
- Brand Portfolio: Coca-Cola continues to command >40% global non-alcoholic ready-to-drink market share, with nine brands exceeding $1 billion in annual sales.
- Innovation: Expansion into functional beverages (e.g., Coca-Cola Zero Sugar, sports hydration) and digital transformation in marketing are sustaining relevance across consumer demographics.
- Geographic Diversification: Strong growth in key markets including Latin America, India, and Southeast Asia de-risks revenue concentration and positions the company to capture higher-growth consumption trends.
Coca-Cola’s blend of operational efficiency, adaptive innovation, and financial discipline supports the thesis of continued resilient growth and justifies renewed investor attention.
Volume and Liquidity
Market liquidity and sustained volume further evidence institutional confidence in KO:
- Sustained Trading Volume: Coca-Cola averages over 13 million shares traded daily on the NYSE, ensuring tight spreads and consistent price discovery. This depth reduces execution risk for both retail and institutional participants.
- Float and Institutional Ownership: With a float exceeding 4.3 billion shares and institutional ownership at nearly 70%, the stock benefits from high-quality, stable holders. These characteristics often signal an underlying foundation for dynamic valuation reratings during periods of renewed optimism.
This liquidity ensures flexibility for various investment sizes, making KO highly accessible in a volatile macro environment.
Catalysts and Positive Outlook
Coca-Cola is uniquely positioned to benefit from ongoing and forthcoming bullish catalysts:
- Product Innovation: Ongoing launches of no/low-sugar options (e.g., Coke Zero), premium hydration (BODYARMOR), and functional products are driving incremental growth and expanding the addressable market. The company’s strategic investments in new packaging and sustainability appeal to next-generation consumers.
- Geographic Expansion: Recent joint ventures and distribution deals in Asia-Pacific, coupled with strong market share gains in India and Latin America, are expected to continue driving growth in regions with rising middle-class incomes.
- ESG and Sustainability: Coca-Cola’s commitment to reducing plastic waste, carbon emissions, and water usage places the company as an ESG leader in consumer staples—a priority for institutional allocators.
- Digital Transformation: Accelerated digital marketing, direct-to-consumer initiatives, and enhanced data analytics are improving engagement, reducing costs, and supporting premiumization strategies.
- M&A and Partnerships: Recent minority stakes in leading functional beverage startups and continued disciplined capital allocation indicate an appetite for opportunistic growth.
Looking ahead, the combination of these factors—in tandem with an improved consumption backdrop as inflation moderates—suggests a steadily rising earnings trajectory and above-consensus potential for fiscal 2025.
Investment Strategies
KO’s current setup appears attractive for a spectrum of investment horizons:
- Short-Term: The technical base built around $59 and improving Q2 volume trends offer a near-term entry with a clearly defined risk. Pending the Q2 2024 report in late July, positive earnings surprises or announcement of new product rollouts would likely catalyze further upside.
- Medium-Term: For those seeking a stable, dividend-paying position into year-end, KO’s mid-4% dividend yield (annualized) and conservative payout make it a defensive anchor—especially valued in the Canadian context for tax efficiency and stability amid macroeconomic uncertainty.
- Long-Term: Over a multi-year horizon, KO represents a durable core holding, with a proven model of inflation-resilient pricing power, demographic-driven growth, and compounding capital returns.
Investors may consider phased accumulation near current levels, particularly as the share price converges with technical support and ahead of anticipated catalysts (earnings, product launches, or regulatory tailwinds). For Canadian investors, KO’s USD listing may also provide a useful currency hedge depending on CAD/USD dynamics.
Is It the Right Time to Buy Coca-Cola?
Synthesizing the above, Coca-Cola’s compelling cocktail of record cash flows, strategic category leadership, continuous innovation, and defensive balance sheet underscores why it remains a bellwether in any diversified portfolio. Robust technical support, institutional sponsorship, and a still-attractive valuation—especially relative to its historic multiples and near-term growth catalysts—suggest that KO may be entering a new bullish cycle for 2025.
With upward earnings revisions possible in coming quarters, premium dividend visibility, and clear structural strengths, Coca-Cola seems to represent an excellent opportunity for investors seeking resilient growth paired with downside protection. The current technical and fundamental setup justify a renewed focus on KO for both tactical and strategic positioning, particularly as the consumer staples sector regains market favour.
For investors scanning today’s landscape for quality and reliability, Coca-Cola appears to be at a strategic inflection point, and the path ahead may reward those who seriously consider the upside potential of this iconic global franchise.
How to buy Coca-Cola stock in Canada?
Buying Coca-Cola stock online is both straightforward and secure when you use a regulated broker in Canada. Whether you want to become a shareholder in the iconic beverage company or prefer to trade on its price movements, there are two main ways to get started: buying shares directly (spot buying), or trading Contracts for Difference (CFDs). Both methods are accessible through leading online brokers, each with its own advantages and fee structure. Below, you'll find a practical comparison between these approaches—and further down this page, a detailed broker comparison to help you choose the best partner for your investment journey.
Spot Buying
When you buy Coca-Cola shares for cash—also called spot buying—you become a direct shareholder in the company, entitled to dividends and voting rights. Most Canadian online brokers allow you to place an order for Coca-Cola (KO) shares listed on the NYSE, typically charging a fixed commission per trade, such as $4.99 to $9.99 per transaction in Canadian dollars.
Important Information
Example: Suppose the Coca-Cola share price is $60 USD (roughly $82 CAD with current exchange rates). With a $1,000 CAD stake and a brokerage fee of about $5, you could purchase approximately 12 Coca-Cola shares.
✔️ Gain scenario: If the share price rises by 10%, your shares would be worth around $1,100. That's a +$100 gross gain, or +10% return on your initial investment.
Trading via CFD
CFD (Contract for Difference) trading allows you to speculate on Coca-Cola’s price movements without owning the shares themselves. Instead, you enter a contract with the broker that mirrors the asset's price changes. The main costs here are the spread (the difference between buying and selling prices) and overnight financing fees if you hold leveraged positions longer than a day.
Important Information
Example: With $1,000 CAD, you open a CFD position on Coca-Cola shares using 5x leverage. This means your market exposure is $5,000.
✔️ Gain scenario: If Coca-Cola rises 8% in value, your position gains 8% × 5 = 40% (before fees). That’s a $400 gain on your $1,000 stake.
Final Advice
Before investing, it's crucial to compare brokers’ fees, platforms, and conditions to find the solution best suited to your needs—our broker comparison tool further down the page can help. Whether direct ownership or leveraged trading is better for you depends on your investment goals, risk tolerance, and style. Always take the time to review the details so your first steps into Coca-Cola stock are confident and informed.
Our 7 tips for buying Coca-Cola stock
| 📊 Step | 📝 Specific tip for Coca-Cola |
|---|---|
| Analyze the market | Assess the beverage sector’s performance and look at consumer trends in Canada for strong Coca-Cola demand. |
| Choose the right trading platform | Select a Canadian broker listed on the TSX or NYSE, offering competitive fees and fractional share options. |
| Define your investment budget | Allocate only what fits your financial plan, considering Coca-Cola’s consistent dividends and stability. |
| Choose a strategy (short or long term) | For most Canadians, a long-term approach benefits from Coca-Cola’s steady dividends and strong global brand. |
| Monitor news and financial results | Stay updated on Coca-Cola’s earnings reports, product innovation, and any news impacting the Canadian market. |
| Use risk management tools | Use features like limit orders and diversification to manage your risk while holding Coca-Cola shares. |
| Sell at the right time | Review your goals and consider selling if Coca-Cola reaches your target price or fundamental circumstances change. |
The latest news about Coca-Cola
Coca-Cola’s Canadian bottling operations report steady growth in sales volume amid resilient consumer demand. According to a recent update from Coca-Cola Canada Bottling Limited, sales volumes in the Canadian market have shown a healthy rise during the last quarter, supported by strong demand for mainline Coca-Cola products and emerging interest in reduced-sugar and no-sugar beverage alternatives. This growth comes despite ongoing inflationary pressures impacting the broader Canadian food and beverage sector, suggesting robust brand loyalty and effective local distribution strategies.
The Coca-Cola Company’s second quarter earnings highlight positive North American performance, with Canadian revenues contributing to regional momentum. In its official Q2 2024 earnings report released in the past week, The Coca-Cola Company noted that North American segment revenues rose by low single digits year-over-year, with Canada identified as a significant contributor to the segment's overall resilience. Executives credited favorable weather across major Canadian cities and successful in-store promotional campaigns for driving higher unit case volumes across the portfolio, especially for sparkling beverages and premium hydration brands.
Strategic environmental initiatives in Canada affirm Coca-Cola’s ESG leadership and local stakeholder engagement. Coca-Cola Canada announced the expansion of its recycled PET plastic initiative for 500ml bottles nationwide, signaling a continued commitment to environmental sustainability—a theme increasingly important to both institutional and retail investors in Canada. The move aligns with federal and provincial recycling targets and has garnered positive attention from local regulators and sustainability-focused funds, potentially enhancing the company's reputation and favor with environmentally conscious Canadian consumers.
Recent distribution partnership with a major Canadian convenience retailer expands Coca-Cola’s presence and accessibility. As part of new retail partnerships emphasized in their July 2024 press releases, Coca-Cola secured expanded shelf space and promotional integration with Circle K, one of Canada’s largest convenience store networks. This agreement is expected to increase consumer touchpoints in key urban and suburban centers, supporting incremental sales opportunities and strengthening the company’s market penetration in the Canadian beverage sector.
Favorable analyst commentary from Canadian investment banks sustains positive investor sentiment towards Coca-Cola stock. Canadian banks such as RBC Capital Markets and Scotiabank have reiterated their “outperform” and “sector outperform” ratings on KO shares in the latest research notes published this week. The analysts point to Coca-Cola’s consistent cash flow generation, robust Canadian growth outlook, and defensive qualities amid volatile market conditions as reasons for maintaining a constructive view, emphasizing the stock’s appeal to income-oriented and long-term investors in Canada.
FAQ
What is the latest dividend for Coca-Cola stock?
Coca-Cola currently pays a quarterly dividend. The latest declared dividend is $0.485 per share, with the most recent payment made on July 1, 2024. Coca-Cola has a strong history of annual dividend increases, making it a popular choice for income-focused investors. Its consistent dividend policy and reputation as a Dividend Aristocrat are notable highlights for long-term shareholders.
What is the forecast for Coca-Cola stock in 2025, 2026, and 2027?
Based on recent prices, Coca-Cola stock is projected to reach approximately $80.60 by end of 2025, $92.90 by end of 2026, and $123.90 by end of 2027. These optimistic yet plausible forecasts reflect the company's proven business resilience and ongoing global beverage demand. Analyst sentiment on long-term consumer staples remains favourable due to strong brand loyalty and steady cash flow.
Should I sell my Coca-Cola shares?
Holding onto Coca-Cola shares can be considered an attractive option for many investors. The stock is supported by Coca-Cola’s stable revenues, global reach, and history of weathering diverse market conditions. Its robust dividend record and defensive position within the consumer staples sector further add to its mid- to long-term appeal. Based on fundamentals, maintaining exposure could suit investors seeking stability and gradual growth.
Are dividends from Coca-Cola stock taxed in Canada?
Yes, dividends from Coca-Cola are generally subject to a 15% U.S. withholding tax for Canadian holders, which may be offset by a foreign tax credit when filing Canadian taxes. Since Coca-Cola is a U.S. company, it is not eligible for the Canadian Dividend Tax Credit. Holding U.S. stocks like Coca-Cola in a registered account such as an RRSP can allow you to avoid U.S. withholding tax on dividends, offering a potential tax advantage.
What is the latest dividend for Coca-Cola stock?
Coca-Cola currently pays a quarterly dividend. The latest declared dividend is $0.485 per share, with the most recent payment made on July 1, 2024. Coca-Cola has a strong history of annual dividend increases, making it a popular choice for income-focused investors. Its consistent dividend policy and reputation as a Dividend Aristocrat are notable highlights for long-term shareholders.
What is the forecast for Coca-Cola stock in 2025, 2026, and 2027?
Based on recent prices, Coca-Cola stock is projected to reach approximately $80.60 by end of 2025, $92.90 by end of 2026, and $123.90 by end of 2027. These optimistic yet plausible forecasts reflect the company's proven business resilience and ongoing global beverage demand. Analyst sentiment on long-term consumer staples remains favourable due to strong brand loyalty and steady cash flow.
Should I sell my Coca-Cola shares?
Holding onto Coca-Cola shares can be considered an attractive option for many investors. The stock is supported by Coca-Cola’s stable revenues, global reach, and history of weathering diverse market conditions. Its robust dividend record and defensive position within the consumer staples sector further add to its mid- to long-term appeal. Based on fundamentals, maintaining exposure could suit investors seeking stability and gradual growth.
Are dividends from Coca-Cola stock taxed in Canada?
Yes, dividends from Coca-Cola are generally subject to a 15% U.S. withholding tax for Canadian holders, which may be offset by a foreign tax credit when filing Canadian taxes. Since Coca-Cola is a U.S. company, it is not eligible for the Canadian Dividend Tax Credit. Holding U.S. stocks like Coca-Cola in a registered account such as an RRSP can allow you to avoid U.S. withholding tax on dividends, offering a potential tax advantage.
