Could Investing $10,000 in Coca-Cola Make You a Millionaire?
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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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July 6, 2025
05:25 AM
The Motley Fool
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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 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.
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