My Coca-Cola Investing Story
I made my first Coca-Cola (KO) investment in May 1992. I paid $1,115.87 to buy 20 shares. I immediately enrolled in Coca-Cola's dividend reinvestment program so my dividends would buy fractional shares each time the company paid its quarterly dividend.
I bought another 25 shares paying $1,000 in 1992. To even off my total purchases to $2,500 I spent $384.13 to buy 5 plus shares in 1999. After that I bought no more shares.
Due to dividend reinvestment and increasing annual dividends plus two 2 for 1 stocks splits I now own 362 shares of Coca-Cola.
As of today, May 24, 2022, they are valued just over $23,000.
I have received just over $7,000 in dividends since 1992. My dividends for 2021 totaled $592.
Because Coca-Coca has increased in annual dividend 60 years in a row, It's a good bet that my dividends will continue to get bigger each year in the future.
Coca-Cola closed at its all-time high of $66.21 on April 21. Coca-Cola continues to expand is product line, earnings and free cash flow so its stock price and dividend steadily increase year after year. It is a premier growth stock.
So what's the main take away of this story. To achieve financial security build a portfolio of premier dividend-paying growth stocks that have characteristics like Cola-Cola. The stocks don't have to have Coca-Cola's product mix; simply own stocks that have multiyear year records of increasing earnings, cash flow and dividends. Always reinvest dividends. Be patient and hold the stock for many years. This approach has worked well for me and I am sure that it will work equally well for you.
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Posted May 28, 2022