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Coca-Cola is not just a beverage giant; its stock has offered consistent gains over the years. From its public offering in 1919 at $40 per share, the company has transformed remarkably. Let’s examine the journey of a hypothetical $1 investment in Coca-Cola from 1925 onward.
Investing in Coca-Cola in 1925
In 1925, Coca-Cola shares were available at $153.625, and they yielded a dividend of $7 per share, according to Coca-Cola’s historic data. Fast forward to today, and Coca-Cola’s current trading value hovers around $70 per share. However, it’s crucial to note that the stock has undergone numerous splits since 1925.
Impact of Stock Splits
The history of Coca-Cola’s stock splits is fascinating. It has split its shares 11 times since 1925. According to Nasdaq, a single share from 1925 would transform into about 9,216 shares today, culminating in a current value exceeding $645,120.
A mere $1 investment back then would translate into approximately $4,200 today, equaling about 60 shares at the current stock price. This represents an impressive annualized return of approximately 8.7% over a century.
The Power of Coca-Cola’s Dividends
Coca-Cola’s status as a “Dividend King” is well-earned due to its consistent dividend increases for over 50 years. Few companies maintain such a legacy. With 63 consecutive years of dividend hikes, Coca-Cola has been rewarding its investors since 1920.
While exact historical data on total dividend reinvestment isn’t readily available, today’s dividend yield stands at around 2.91%. Hence, owning 60 shares—worth $70 each—would yield over $122 annually from your original $1 investment.
For those interested in exploring more on profitable investments, consider reading the 15 Investments Warren Buffett Regrets.
Ultimately, investing in Coca-Cola continues to be a lesson in the power of patience and foresight. For those keen on enhancing their personal finance strategies, Click Here For More Personal Finance tips and strategies.
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