Has Coca-Cola Stock Become Overvalued?
With 2022 behind us, it's a great time to review the year's winners and losers. Regarding the winners, it's tempting to assume that, because a stock outperformed meaningfully last year, it's likely to perform poorly over the long haul. That's because underperforming sectors may likely catch up while outperforming sectors give up some gains. But the opposite can sometimes be true: Some winners keep on winning over the long haul.
One winner that appears poised to keep performing well in 2023 and beyond is soft-drink and snack company Coca-Cola (NYSE: KO). Despite crushing the S&P 500 last year, the stock still looks attractive enough for shareholders to hold on to their shares. With a robust dividend yield and prospects for meaningful earnings growth in the years ahead, this dividend stock gives investors a lot to like.
While a company's stock should never be valued based solely on its dividend, Coca-Cola's long and exceptional history of dividend growth makes its dividend alone a major reason to own the stock. First, consider Coca-Cola's meaningful dividend yield. Based on the stock price at the time of this writing, the current dividend yield is almost 2.9%.
Source Fool.com
