Coca-Cola’s stock, although not exciting, has been traded since 1919. Warren Buffet’s Berkshire Hathaway owns 400 million shares since the late 1980s and hasn’t sold any since 1994. A $1,000 investment 30 years ago would be worth $9,030 today, mostly from dividend payments.
Despite Coca-Cola’s returns, investing in the S&P 500 would yield approximately $20,000 today, double the return. Berkshire Hathaway has likely outpaced the S&P 500 with its Coca-Cola holding. Despite consistent dividend increases, Buffett has not used the proceeds to buy more shares since 1994 due to current valuation.
Coca-Cola stock, while attractive for income investors with a 2.9% dividend yield, has underperformed the S&P 500 in the last 30 years. Unless solely focusing on dividend income, it may not be a suitable investment choice. Motley Fool Stock Advisor recommends 10 other stocks for potential monster returns, excluding Coca-Cola.
Before buying Coca-Cola stock, consider other investment options recommended by Motley Fool Stock Advisor for potentially higher returns. Past recommendations for Netflix and Nvidia have yielded significant returns. Investing in the right stocks could lead to substantial gains in the future.
Read more at Yahoo Finance: If You’d Invested $1,000 in Coca-Cola Stock 30 Years Ago, Here’s How Much You’d Have Today
