Coca-Cola (KO 0. 55%) is a that everyone is familiar with. It has 200 different drink ducts that are sold in 200 countries and territories across the globe. There are 2.
2 billion servings consumed each day. And perhaps something most investors appreciate is the fact that Warren Buffett-led Berkshire Hathaway owns 400 million s. This is a dominant in its industry.
But could a $10,000 investment in this top beverage stock one day make you a millionaire. Image source: Getty Images. Coca-Cola has many favorable qualities Coca-Cola is an outstanding company.
One reason why is because of its strong brand. It has offered consumers across the globe consistency with its duct quality while also leaning on its marketing wess to connect on a deeper level.
The brand makes up Coca-Cola's economic moat. The brand presence also supports pricing power. In the quarter (Q1 2025 March 28), Coca-Cola benefited from a 5% increase in prices.
This is a usual occurrence. The management team understands how well the brand resonates with customers, who won't necessarily switch to ducts that competitors sell.
Investors can also view Coca-Cola as a that is resilient to recessionary pressures. That's because its beverages are small, repeat purchases that consumers have formed habits around.
I don't believe that in tough economic times, people will immediately cut down their spending on Coca-Cola ducts.
This trend is playing out now, at a time when investors are worried the uncertain macro climate. The company's organic revenue rose 6% year over year in the first quarter, with unit volume growing 2%.
This might explain why the stock is up 15% in 2025 (as of July 3), well ahead of the S&P 500 Index.
Because Coca-Cola outsources bottling and distribution activities to third-party partners, it's able to create a more efficient organization. The result is huge fits for Coca-Cola. The reported $3.
7 billion in operating income in Q1. That was good for a superb 32. 9% operating margin. In my view, there are minimal threats of Coca-Cola ever being disrupted.
The fact that the has been around for well over 100 years is a sign of its durability.
Un -driven industries that attract very smart entrepreneurs and a lot of capital, the beverage market goes at a slower and more boring pace.
Investors can have confidence that Coca-Cola will still be relevant several decades from now.
This beverage stock is only for a certain kind of investor As mentioned, there are many attractive traits of this company. In particular, Coca-Cola's fitability is incredible.
And there is no reason to believe this performance will change anytime soon. That benefits holders directly, as Coca-Cola is a Dividend King.
It has raised its payout in 63 straight years, which is an unbelievable feat. It's a indication of just how great of a this is and how long it has been successful.
This points to what I believe is the correct way to view this stock, which is that it's only for investors seeking steady and consistent income from the companies that they own.
The current dividend yield of 2. 81% can vide a nice income for certain portfolios. However, this stock isn't going to give you much in the way of strong capital appreciation.
Its growth isn't anything to write, as Coca-Cola is an extremely mature. In the past 10 years, the stock has generated a total return of 146%.
That performance comes in substantially below the broader S&P 500 Index. $10,000 in Coca-Cola s won't make you a millionaire, a perspective that I'm confident in.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.