Stock Idea: The Coca-Cola Company (KO, $62.96)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Coca-Cola (KO) stock has spent the last ten years trading roughly between $40 and $60 dollars per share, and it is just now showing signs that it's ready to break out from that trading range. I would buy KO today. The dividend is $1.76 per share, which represents a yield of 2.80%. Consensus earnings growth for 2011 and 2012 is project at 10.3% and 10.1%. The PE is 19.31 and the beta is quite low at 0.59.

(Many stocks have made no significant advances in the recent decade. Four major hits came to U.S. stock markets during that time: the Sept. 11 terrorist attack, the ensuing recession, the 2008 financial crisis, and its ensuing recession. These events cost American companies lots of money; many were financially devastated, e.g. real estate and financial companies; and some even closed for business, e.g. Bear Stearns.)

KO looks like it will trade in the low $60's in the near-term (approximately $62.50-$65.50), and I expect the next move to be up. I expect that both short-term investors and medium-term investors could be happy with KO's investment returns. Read about the company at http://www.thecoca-colacompany.com/.

****

The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

I am not paid to promote nor disparage any investment. My recommendations are based on hypothetical situations of what I would do, not advice on what you should do. The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Investments are risky, and can go down in value. Past investment results are not indicative of future returns. I am not a licensed investment advisor nor a tax advisor. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment. This is not a solicitation to buy or sell any security.