What does the Coca-Cola Snacks company own

3 stocks at a glance: non-cyclical + food industry + moat

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This article from the series “Stocks at a Glance” introduces three heavyweights with an impressive dividend history.

Coke

The Coca-Cola Company is one of the world's largest soft drink producers. The company owns the rights to around 500 brands worldwide. The range is divided into four areas:

  • The largest range with 70 percent are the carbonated soft drinks (Cola, Fanta or Sprite),
  • after that come sports drinks and water with 18 percent (Powerade or Vio).
  • The last two areas are juices and dairy products as well as tea and coffee drinks. Together, these two areas still make up 12 percent.

Since Coca-Cola hardly grows organically any more, the company is expanding its range by buying up other beverage manufacturers. Thus, for example, it holds 90 percent of the company shares in innocent (smoothie brand) or 17 percent of the energy drink manufacturer Monster.

Coca-Cola is a dividend aristocrat and has been raising dividends consistently for 57 years. The dividend of 2018 was paid with 100 percent of the profit. However, this was largely due to the re-franchising of the bottling plants

  • Share price: € 41
  • Dividend: $ 1.60
  • Dividend yield: 3.43%
  • average 4-year dividend: 3.45%

Coca-Cola is therefore 3.4 percent in the middle of the average 5-year dividend yield. In 2018, Coca-Cola made about $ 6.4 billion in profits worldwide. A third of sales are generated in the USA.

The restructuring in the company such as the re-franchising of the filling activities, especially in North America, as well as the diversification of the product range through takeovers is now bearing fruit (the net margin is increasing), as can be seen in the following graphic. As soon as the re-franchising of the bottling plants is fully completed, sales growth will also increase.