Is Coca Cola a Good Stock to Buy?
When it comes to brands, there aren’t many as iconic as Coca Cola. Besides its namesake product, the beverage giant has a large portfolio of drinks which line supermarket shelves around the globe. But is Coca Cola a good stock to buy in 2025?
In this article, we will highlight the cases for and against investing in Coca Cola and demonstrate how to buy shares with Admiral Markets.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
Table of Contents
Is Coca Cola a Buy or Sell?
Coca Cola has been around for well over a century, in which time it has spread all over the globe and grown into one of the largest companies in the world.
But is Coca Cola a good stock to buy in 2025? In the following sections, we will highlight some of the buy and sell cases for Coca Cola shares.
Buy
Coca Cola is one of the most recognisable brands in the world.
And remember, the company is more than just its flagship product. It has a portfolio full of popular brands, including Costa Coffee, Fanta, Schweppes and Sprite.
Big, Global Brand
Whilst its products might not be essential, its iconic branding and global popularity mean that consumers tend to buy them regardless of what’s happening in the wider economy.
This consistent demand has historically allowed Coca Cola to generate fairly steady revenue throughout all stages of the economic cycle (although future performance cannot be guaranteed).
Such consistency can provide stability to a portfolio and is something which investors tend to find particularly desirable during times of economic uncertainty.
Dividend Track Record
Its historically strong, consistent sales have helped support a dividend track record that not many companies in the world can rival.
The Coca Cola dividend has increased every year for 63 consecutive years, making the beverage giant a dividend king. Whilst future payments can never be guaranteed, continuing to pay and raise dividends appears to be a priority for Coca Cola.
At the time of writing, 16 July 2025, the Coca Cola dividend yield is 2.9%, which is more than double the yield of the wider S&P 500.
This might make investing in Coca Cola an attractive prospect for investors who are interested in generating income from their portfolio.
Sell
Whilst Coca Cola may appeal to a certain type of income conscious investor, it’s less likely to appeal to those who prioritise capital growth. As a mature business, its days of high growth are most likely in the past.
It’s Underperformed the Market
Indeed, Coca Cola shares have underperformed the wider market over the last ten years.
The beverage giant generated a total return of around 130% over the last ten years, significantly lower than the S&P 500’s total return of 250% over the same time.
However, it should be noted that past performance is not a reliable indicator of future results.
It Might Be Expensive
Although Coca Cola has underperformed the market over the longer term, it has actually outpaced the S&P 500 over the last year when dividends are accounted for.
However, this strong performance has led to share price becoming more expensive relative to the wider market.
At the time of writing, Coca Cola shares are trading for around 28 times earnings. That’s more than the wider S&P 500, which currently has a price to earnings ratio of less than 25.
It’s also considerably more expensive than rival PepsiCo, which currently trades at less than 20 times earnings.
Coca Cola Stock Forecast
According to 16 third-party analysts, polled by TipRanks, offering a 12-month stock price forecast for Coca Cola over the past 3 months:
- Buy Ratings: 15
- Hold Ratings: 1
- Sell Ratings: 0
- Average Price Target: $79.36
- High Price Target: $86.00
- Low Price Target: $70.00
How to Buy Coca Cola Shares in 4 Steps
This section is for informational purposes only and does not constitute investment advice or a recommendation
In order to buy Coca Cola shares with Admiral Markets, follow these 4 steps:
- Register for an Invest.MT5 account and log in to the Dashboard
- Click ‘Invest’ next to your live account details to open the Admiral Markets Platform
- Search for Coca Cola stock and click the symbol to open the instrument page
- Enter the number of shares you want to purchase and click ‘Buy’ to send your order to the market!
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Frequently Asked Questions
How often does Coca Cola pay dividends?
Coca Cola currently pays dividends on a quarterly basis, as of 21 July 2025. However, please note that future payments are never guaranteed.
How much did Warren Buffett invest in Coca Cola?
Between 1988 and 1994, Warren Buffett’s Berkshire Hathaway invested a total of $1.3 billion in Coca Cola, acquiring 400 million shares.
How many shares does Coca Cola have?
Coca Cola had 4,301,000,395 shares outstanding as of 18 February 2025.
Who owns most shares of Coca Cola?
Berkshire Hathaway is currently the largest shareholder of Coca Cola, holding more than 9% of the beverage company’s outstanding shares. Please note that this information is subject to change.
How many times has Coca Cola stock split?
Since going public in 1919, Coca Cola has split its stock 11 times. The most recent of these stock splits was a 2-for-1 split in 2012.
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