Coca-Cola: Expect Stagnation In This Environment


  • KO is a dividend king that delivered excellent organic growth in 2022 but will face tough comps and macro headwinds in 2023.
  • The benefits of its inflationary price hikes and optimistic growth forecasts have likely been priced in.
  • With short-term Treasury yields approaching 5%, KO’s yield and dividend growth rate doesn’t offer much appeal.
  • I examine KO’s valuation and dividend strength to see if the stock is attractive at current levels.

Times Square in New York City

Anne Czichos/iStock Editorial via Getty Images

With Pepsi (PEP) set to report Q4 Earnings today, I thought I’d take a look at its big brother Coca-Cola (NYSE:KO) to see if the stock might be an attractive buy

KO Growth Metrics

KO Growth Metrics (Seeking Alpha)

Data by YCharts

US Gasoline Price Chart

US Gasoline Price Chart (

KO Historical Yield

KO Historical Yield (Macrotrends)

US Treasury Yields 2/8/23

US Treasury Yields 2/8/23 (Bloomberg)

Data by YCharts

KO Dividend Growth Metrics

KO Dividend Growth Metrics (Seeking Alpha)

KO Historical Payout Ratio

KO Historical Payout Ratio (Seeking Alpha)

KO Revenue History

KO Revenue History (Seeking Alpha)

KO Valuation

KO Valuation (Morningstar)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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