Coca-Cola is an old-school company that has been around for a century, and its stock has been through different challenges and still proves to be solid in the stock exchange market.
Coca-Cola's stock might not be the most exciting stock due to low volatility, however, it provides some asset security. When you buy Coca-Cola stock, you can feel secure because everyone would agree that the company is going to stick around for a long time.
There are different opinions about buying Coca-Cola stock. Some people think that purchasing this stock is a good idea, while others are against it. However, we believe that it depends on the type of investor you are or want to be.
If you are considering buying coke stock, you have a lot to check and inspect. We have made it easier for you, and in this guide, we have compiled everything you need to know in order for you to make the right decision.
How Is Coca-Cola’s Stock Doing?
The company went public in 1919, and since then it has grown in value, despite some drops throughout this journey, it has greatly benefited its investors over the long run.
It is worth mentioning that the stock has been split ten times during its life cycle. The first split took place in 1927 and the last split was in 2012.
The Coca-cola stock split was intended to create more shares for investors to buy, lower the stock price per share, and so make it more affordable for investors.
Currently, Coca-Cola's stock trades for $60 per share. So far this year has seen the price trading steadily between $52 and $65, despite fears of an upcoming recession.
However, some investors do not see any thrill in Coca-Cola's stock as it has grown only around 20% in the last 3 years. Many investors prefer to use their capital in other stocks that provide higher returns from more volatility.
On the other hand, the stability this stock provides over the long run makes it comfortable for buyers to keep this stock in their portfolio, as they collect dividends and slowly watch their investments grow.
How to Buy Coca-Cola Stock?
If you like the prospects of investing in the fizzy drinks company, then here are five easy steps for you to start trading Coca-Cola stock today:
It is really simple. Just follow along and you will be quenching your investment thirst in no time.
Look for the right broker
Coca-Cola stocks are traded on the New York Stock Exchange market, and to access the market, you need a broker that gives you this access, so you can start trading.
If you do a simple search you will find many financial brokers, but do not assume that all of them are legit and reliable. There is a huge number of brokers that are scammers that will end up stealing your money, and you will see nothing from your investment.
To find a reliable broker that will help you invest in Coca-Cola, there are some qualities that you need to be looking out for. These include licenses, availability of markets, payment methods, and broker commissions. There are different types of licenses that indicate that a broker is reliable. Licenses such as FCA, CySEC, and FSCA are high-profile authorities that grant licenses that validate brokers.
These brokers are continuously observed, strictly controlled, and heavily punished in any cases of misconduct. So you can be confident that if you see a broker holding any of the above-mentioned licenses, they are a good pick.
Another thing you need to check is the availability of markets, nowadays most brokers offer every financial market, but you need to be sure that a broker offers stock trading, and that Coca-Cola's stock is offered as well.
Finally, in your checklist, check the charges, as every broker has their own commission and fees that they take when you deposit when you trade, and when you withdraw. When you open a trading position, brokers charge fees in the form of spread and/or fixed fees, and if the commission rates are high, you might end up paying so much to the broker, that you won't get any real benefit from your investment.
We have listed our pick of the top-rated brokers that can get you started with your Coca-Cola investment:
Broker
Rating
Fees
Minimum
Maximum
Broker 1
4
$
Broker 2
5
$
Broker 3
4
$
Broker 4
5
$
Broker 5
4
$
Open your trading account
Now that you have found where to buy Coca-Cola stock, you need to open your account on that broker’s website. The registration process is very simple, similar to opening a new email account, but with a few additional steps.
Firstly, you will need to provide your personal information such as your name, phone number, address, email address, and country of residence. To verify the new account, you will be sent a verification link via email or a text message with a code that you will need to enter somewhere during the registration process.
Furthermore, before you can start trading Coca-Cola shares, you are asked to submit further verification documents. This is nothing to worry about. These required documents will include proof of identity, proof of residence, and a copy of your credit card showing only the last 4 digits of the credit card number.
Deposit funds in your trading account
Now you will need to add some capital to your trading account for your to be able to buy your Coca-Cola stocks.
There are several ways to add funds to your trading account. You need to check the “payment methods” or “deposits & withdrawals” on the broker’s website. Most brokers nowadays accept different payment methods such as credit/debit cards, e-wallets, crypto wallets, and wire transfers. The only difference is in the fees charged and processing time.
Crypto wallets and e-wallets are usually faster and have fewer commission fees because they do not go through several banking structures. At the same time, credit/debit cards are mostly used because they are more convenient and almost everyone willing to trade has their own bank account and bank card.
The above-mentioned methods are usually instant, but can sometimes take up to 2 business days for the money to show in your trading account.
Wire transfers are usually safer if you are concerned about releasing your personal or banking information to any 3rd party, but they cost more and can take up to 7 business days to clear.
When you are adding money to buy shares in Coca-Cola, you need to check the minimum deposit requirement by the broker. Given the affordable stock price of Coca-Cola, you might need to deposit more money than the price of 1 share.
Currently, Coca-Cola’s stock price is $60 and most brokers will not allow you to deposit only this amount, because $200 is commonly adopted as the minimum deposit amount.
Buy Coca-Cola stocks
Once you have the capital for the Coca-Cola investment, you need to decide how many Coca-Cola shares to buy. Let’s say that you have deposited $200, you can buy 3 shares and the remaining amount will stay in your balance.
Or, if it is your first time buying Coca-Cola stocks you can buy 1 stock and observe how it works, later you can open another trading position by purchasing some more.
If you buy stock with all the budget that you have, and if the price moves in an unfavorable direction, you are going to lose some of your investment, if you sell at a lower price.
However, if you buy 1 stock, you can test how the stock price is moving, and add more stocks if needed. Adding more stocks can amplify your gains if you sell them at a higher price.
The only benefit you can get from buying several stocks is if you are going to hold them for a long period of time, eventually you can receive dividends. Didedints pay out around $0.41 per share per quarter.
You are now ready to buy Coca-Cola stock. You just need to select the stock with the ticker KO, choose the number of stocks, and open your trading position.
Watch your investment
After you open your trading position, you need to watch it consistently and keep track of everything that might affect your investment.
Watching your investment and making sure you make the right decision at the right time is important here, this is how you start realizing gain from your investment.
Reading the market news is very important. Stay aware of global events and the financial statements relating to the company These are going to affect the Coca-Cola stock price, causing it to move up and down.
For example, when the Covid-19 related restrictions eased up, venues started hosting different mass events again, and Coca-Cola increased its sales for these venues which boosted its sales and slowly the stock price increased again.
Reading the technical analysis is also important, to help you predict when Coca-Cola stock might go up, based on which you will be making your decision on whether to keep holding the stock or if it is time to sell.
Moreover, you need to be familiar with trading terminologies and indicators, there are some indicators that can help you be more aware of your trading position.
You do not want to miss it when the stock price drops suddenly, and you will be surprised by how much you are going to lose if you sell your trade position.
For that reason, you can use the stop-loss order, which helps you limit the loss you are willing to take. This order will automatically sell your trading position once the stock price hits a certain point.
When you see the stock price going up, you can either sell your trading position and gain the price difference, or alternatively, you hold your position in the market hoping that the price will keep increasing so that you can sell it at a higher price later.
Is Coca-Cola a Good Stock to Buy?
Coca-Cola stocks have been around for a long time, more than a century in fact, and have proved to be a stable security over the long run, which makes us believe it is a good investment to make.
It might not be the greatest investment for everyone, since the price does not move in huge margins yielding huge returns. But the steady stock price increase over time, and the affordability of the stock, represent the main benefits a shareholder can expect.
The stock price increased by 20% in 2019, followed by a sharp drop in 2020, which was to be expected due to the pandemic taking over the world.
Despite the fact that households kept consuming sodas, the on-premise sales from sporting events, music festivals, and different entertainment activities caused the price to take a tumble.
However, 2021 started off well for Coca-Cola's stock price. After a slight drop in January of 2021, the stock price was back to its old bullish ways and by May 2022, had reached a new all-time high.
Moreover, shareholders receive a Coca-Cola dividend yield of 3%, which is a fair share. The company pays dividends of $0.41 per share each quarter, this makes it a good investment especially if an investor holds more than one share.
So, if you are looking to acquire a stock with long-term security or an asset that pays you dividends, or both, then we recommend Coca-Cola as a good stock to buy.
Let's practice!
Our partner, XM, lets you access a free demo account to apply your knowledge.
You need to find a reliable broker that can give you direct access to the New York Exchange market where Coca-Cola shares are traded. Then you need to decide on your strategy and the amount of trading capital you want to invest, open a position, and you have done it. mission accomplished.
Should I buy coca-cola stock?
It is a good asset to have in your portfolio in the long run. It does not promise a huge return in a few weeks, and the stock is not highly volatile so don't expect huge returns in a short period of time.
However, the stock has proved its reliability over the long term and we don't expect Coka-Cola to be overtaken by any other beverage company in the near future.
What months does coke pay dividends?
Dividends are paid every quarter, which means every April 1, July 1, October 1, and December 15. Coca-cola has raised its dividend payments for shareholders, and in 2022 each share pays $0.41 per quarter.
Can I buy Coca-cola stock for $1?
Yes, only if your broker enables fractional share trading. Not all brokers offer it, so you need to make sure your broker lets you buy less than 1 share. When you are buying a Coca-Cola share for $1, it means you own only a portion of one stock. However, the stock price movement still affects your investment as a normal share would.
