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Could Investing $10,000 in Coca-Cola Make You a Millionaire?

July 6, 2025
05:25 AM
4 min read
AI Enhanced
investmentstocksconsumer staplesdefensive sectorsmarket cyclesseasonal analysismarket

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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...

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investment

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Published

July 6, 2025

05:25 AM

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investmentstocksconsumer staplesdefensive sectorsmarket cyclesseasonal analysismarket

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.