Coca-Cola shares celebrated 103 years on the stock exchange on Monday. Can you guess how much the initial investment in 1 share grew?

The history of the world connections of the Coca-Cola company dates back to 1892. It entered the capital market and after the 1st world market on the 5th of 1919. One share of Coca-Cola was bought for 40 USD when entering the NYSE stock exchange. As we wrote no, now their stock would have an incomparable amount. At that time, the predecessor of the SunTrust bank took care of the writing, which received shares for USD 100,000 as part of the transaction. After 68 years, their drain, or in 1987 the bank sold them for no more than USD 2 billion.

In general, if someone had held Coca-Cola shares since the legendary year 1919, their number in the portfolio would have increased dramatically. Due to the increase in the price, this company gradually approached the total to eleven splits (tpen) action. And in various ways. The last time this happened was in 2012, when it was 1:2.

Short of one original share in 1919, the stock would now have 9,216 shares of Coca-Cola. Shares of Coca-Cola, under the symbol KO, closed down on the NYSE on Friday at a price of $61.15. From the original one share for USD 40, we are currently talking about the value of 563 thousand. USD. In 103 years, the dog has appreciated by 1.4 million percent. And that’s actually just an evaluated course. Historically, investing in Coca-Cola stock has been a great investment every day, even after accounting for inflation. An item that cost USD 100 in the US at the time is now valued at around USD 1,600, i.e. only 100 times more

Originally, Coca-Cola shares were of course issued in paper form.

Coca-Cola and dividends

Npoj’s giant can be one of the few companies that have historically suffered from regular non-operating dividend payments for a long time. Coca-Cola thus joined the so-called dividend aristocrats. She started it in 1920 with a profit from the stock market. In addition, in the last six decades, she has raised a number of credits for the stock. This year, it fluctuated by 2 cents from the usual inflation rate, in previous years it was only one cent. This year, it pays quarterly dividends of USD 0.44 each. For example, the company’s last dividend doubling took 12 years.

For the current physical payment of the dividend, shareholders can request another payment. You must own the share on the decision date of September 16, in other words, the title will be traded for the last time at the current rate on Wednesday, the 14th, when the so-called ex-date is set for Thursday. The dividend yield for the title can currently be set at 2.9 percent.

Last year, Coca-Cola distributed a total of 7.26 billion USD among its shares in dividends. The best action is long-term Warren Buffett, respectively jm co-wife group Berkshire Hathaway owner of 400 million shares. So in 2021 alone, it will earn USD 672 million on dividends.

Reinvestment of dividends could increase their value

The company itself, as an interest during the last stock split in 2012, stated that if in 1919 a shareholder bought a discounted share for USD 40 and reinvested all subsequent dividends received back into the company’s stock, he would have it in them after less than 93 years property even 9.8 million USD. At the time of the rumored split announcement, Coca-Cola shares were trading at USD 37 (adjusted). Now, after another 10 years, it is only possible thanks to a roughly 65% ​​exchange rate shift to deal with a much more significant theoretical

Development of Coca-Cola (KO) in this century

Looking at the course development of the degree in individual years, one can also talk about “covid” in recent years about relative calm with gradual growth. As can be seen from our graphic overview over the last 50 years, the title has seen a number of wild price fluctuations.

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Coca-Cola shares have been part of the prestigious DJIA index of ten of the most important American corporations for a long time since 1987. They first appeared in this index in the wild years of 1932 and 1935. During its history, Coca-Cola has grown dramatically every day thanks to acquisitions, and the market currently values ​​it at approximately USD 264.5 billion. It can be added that Coca-Cola shares reached an all-time high in April this year, when they traded intraday at USD 67.20. In comparison, less than a tenth of the number of birds passed. On Monday, American stock exchanges will be closed due to the centennial holiday, the celebration of 103 years on the stock exchange, so Coca-Cola shares will trade one day later.

The article is in Czech

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