Coca Cola

What do I need to know about KO stock?

The company itself was founded in 1886 when pharmacist Dr John Pemberton produced a syrup that was subsequently mixed with carbonated water. In its first year, the average number of units sold was just nine per day. More than 125 years later, Coca-Cola reports that more than 2.2 billion of its drinks are consumed on a daily basis.

Those numbers are heavily influenced by the fact that a range of major household brands fall under the Coca-Cola umbrella. These include Schweppes, Sprite, Powerade and Innocent Drinks. Coca-Cola stock trades under the ticker symbol KO on the New York Stock Exchange and annual financial results for 2022 revealed that net operating revenues topped $43bn. That was up 11% on 2021 and represented continued signs of recovery following a dip in 2020.

The company's products are sold in more than 200 countries and territories around the world, while its trademark Coca-Cola drink accounts for close to half of the retail value. The organisation's long-term targets are to achieve organic revenue growth of 4-6% while increasing earnings per share by 7-9%.

KO share price history

Coca-Cola shares were first issued in 1919, with 100,000 of these preferred at $100 each while another 500,000 common shares were released without nominal or par value. After a long period of stability, the KO stock price began to rise noticeably in the 1990s. This coincided with the introduction of Powerade as the official drink of the Olympics, as well as the company's re-entry into India. That decade also saw the KO share price benefit off the back of a number of acquisitions and the firm's 100-year partnership with the NBA.

The turn of the century heralded a period of gradual decline in the value of KO stock but the 2010s saw a recovery as performance steadily improved. As with almost every major business, the coronavirus outbreak of 2020 saw Coca-Cola stock heavily affected – falling from $60 per share in mid-February to as low as $38 a month later as the world came to terms with lockdown restrictions. KO stock bounced back quickly, though, and has traded well above the $50 mark since the end of 2020.

What affects the KO share price?

As with any financial asset, the value of Coca-Cola shares can be influenced by a range of external and internal factors. Staying abreast of these should form a central element of your analysis and research to inform the positions you take up.

• Financial results: Coca-Cola releases quarterly and annual reports detailing its revenues, operating incomes, earnings per share, debts and other markers. These can all be used to gauge the overall performance of the business and therefore the KO stock price.
• Company updates: Acquisitions, the launching of fresh brands, new partnerships and other major developments can all prompt a surge of activity around Coca-Cola stock and impact its performance.
• Global events: The COVID-19 pandemic saw Coca-Cola sales drop amid lockdown restrictions while the company suspended its business in Russia in the wake of the conflict with Ukraine.

How to trade or invest in Coca-Cola shares

Investing in Coca-Cola shares

If you're working toward a longer-term strategy, you can take direct ownership of stock with a view to earning profits from the KO share price rising over a period of months or even years. This is an unleveraged approach, so requires you to commit the full amount of capital, but means you could earn dividends on your investment.

Trading KO stock via derivatives

In contrast, trading via contracts for difference (CFDs) may be more suitable if you're looking to enter short-term positions. By using derivative products, you can go long or short on KO stock, depending on your reading of the market – and, by utilising leverage, you'll increase your exposure for a reduced initial outlay.
There's more information on these subjects in our Knowledge Centre:

• CFDs
• Leverage

What are the KO dividends per share?

In 2022, cash dividends per share of KO stock were $1.76. This was up from $1.68 in 2021 and continued the gradual increase seen over recent years. Meanwhile, basic earnings per share for KO were $2.20 – down slightly from $2.26 in 2021.

Pros and cons of trading Coca-Cola stock

Pros of KO stock

• Liquidity: Coca-Cola shares are traded in high volume, making it easier for you to execute at times and prices that suit you.
• Trade or invest: Use derivatives or buy and sell KO stock directly to fit your strategy.
• News coverage: Coca-Cola is one of the world's most recognisable brands, so fundamental analysis is made easier by the extensive media attention it attracts.

Cons of KO stock

• Leverage: Increasing your exposure for a fraction of the capital can serve to amplify your profits if the KO stock price moves in your favour. If it doesn't, though, your losses will be amplified too.
• Volatility: This can also work for or against you. Sudden movements in the KO stock price – if in a direction you were not expecting – can wipe out large chunks of your capital.

How to start trading or investing in KO stock with Tradu

1. Open your account. It takes a matter of minutes and, from the portal, you can switch between separate platforms designed specifically for each asset class.
2. Shape your strategy. Outline realistic goals in line with your level of knowledge, your available capital and your risk appetite.
3. Study the market. Carry out fundamental and technical analysis to build a picture of how the KO share price has shifted over the short, medium and long term.
4. Open your position. Count on slick, seamless execution in the Tradu platform and exit your trade efficiently when the time comes.