Investing in cocacola (Essay Sample)
This is a two page paper that makes recommendations on why I would invest in Coca-Cola Company, which is a publicly traded company. The paper makes the recommendation based on the company’s successive payment of annual dividends, global investment and splitting of sharessource..
This is a two page paper that makes recommendations on why I would invest in Coca-Cola Company, which is a publicly traded company. The paper makes the recommendation based on the company’s successive payment of annual dividends, global investment and splitting of shares. The paper relies on four sources and is in MLA format.
[Name of School]
[Date of Submission]
Why Invest In Coca-Cola
Coca-Cola is the largest global manufacturer, distributor and marketer of non alcoholic beverage drinks with over 500 still and sparkling brands. The company manufactures soft drinks, non carbonated and carbonated drinks as well as juices. The company portfolio includes Sprite, Fanta, Diet coke, Powerade, vitamin water, Coca-Cola, Minute Maid and iced teas. The company also has ownership interests in various canning and bottling operations. Its stock symbol is KO and there are numerous reasons why anyone should invest their money in the company as discussed below.
I would invest in Coca-Cola since it has been paying shareholders annual dividends successively since 1920. Every calendar year, the company mails all the shareholders a statement (Form 1099-DIV) in December showing each year that dividends have been paid. If a person holds shares via a brokerage firm or bank, Form 1099-DIV is mailed to the shareholder by the broker or the bank. The company also submits taxes to the US Internal Revenue Services for shareholders who receive a dividend of $ 10 or more. The dividend checks for all shareowners are also mailed to the address provided, unless other instructions are given by the shareholder (The Coca Cola Company). Coca-Cola annual dividend payments have increased by 11.20 percent over the last five years. If the dividends growth stands at 11 percent, dividend payments are expected to double after every seven years. This is evident in Coca-Cola dividend payment since historical data dating from 1997 has showed that the company has been able to double dividend payments averagely after every 7 years (The Coca Cola Company).
The company shares are not sold directly to the public but through stockbrokers, banks and stock trading companies. However, the company has introduced a direct stock purchase and a dividend reinvestment plan which is managed by Computershare Trust. This plan permits investors to directly buy and sell Coca-Cola shares and reinvest the dividends. Participants of the plan pay dividend reinvestment fees and brokerage commissions to Computershare Trust.
Since it was started, Coca-Cola has strived to maintain the affordability of its stock over the years. In trying to minimize the absolute share price, the company has split its stock 10 times since 1919. Investing in the company can prove profitable since a split will triple or double the shares of the existing shareowners, as well as lower the share price making it attractive and affordable for the rest of the public (The Coca Cola Company).
Coca-Cola Global Investment
I would also invest in the company since it has a global market share and is also quite popular. The company has made huge investments all over the world in a bid to increase its market share, sales and profit margin. The company has been investing heavily in Asia with an aim of beating its competitor and rival PepsiCo. In 211, the company planned to inject an additional $4 billion in China within the next three years, which would be used in expanding some of the existing plants, add other bottling plants, develop other cold drinks and fund marketing and distribution initiatives (Areddy and Esterl). This investment targeting the second largest economy in the world aims at increasing the sales and profits to double digits and counter the company slow sales growth in America. In 2010, the company undertook a similar $1 billion investment in Philippines that would be used in establishing a new bottling plant and strengthening the logistics, marketing and distribution systems (Lucas 20). All these were aimed at serving the company’s ever expanding customer base in the country.
The company is also making other new global investments in the Middle ...
- Popular Trial Ideas And Innovations In Leadership And ManagementDescription: Developing an idea and making innovations are important aspects when it comes to leadership and management. the process of developing a trial idea and managing it is slightly different from a person doing it from the outside....2 pages/≈550 words| 2 Sources | MLA | Business & Marketing | Essay |
- Do You Believe The Eclectic Theory Is All-encompassing As It Is Purported To Be?Description: This theory is not an all-encompassing theory as it is deemed to be because it fails to include above market factors may impact internationalization strategy...2 pages/≈550 words| 3 Sources | MLA | Business & Marketing | Essay |
- Business AnalysisDescription: Business Analysis Business and Marketing Essay Undergraduate level...6 pages/≈1650 words| MLA | Business & Marketing | Essay |