Invested $1,000 in Coca-Cola shares three decades back? Check out the impressive earnings you'd have accumulated today.
Coca-Cola (KO), the iconic beverage company with a history dating back to 1919, offers an appealing dividend yield that sets it apart from the S&P 500. With a current dividend yield of 2.9%, Coca-Cola's return is significantly higher than the S&P 500 average of 1.2%, making it an attractive choice for income investors.
The performance of Coca-Cola over the past 30 years, however, has been less impressive. While a $1,000 investment in Coca-Cola in approximately 1995 would have grown to around $9,030 today, the S&P 500 would have returned approximately $20,000 from the same investment over the same period.
Coca-Cola's status as a Dividend King, having increased its payout for 63 consecutive years, contributes significantly to its total return. The dividend payments, totalling approximately $4,760 from the initial $1,000 investment, have played a crucial role in the growth of the investment.
Warren Buffett's Berkshire Hathaway, a close watcher of Coca-Cola's position, started accumulating positions in the company in the late 1980s. Berkshire Hathaway, which purchased shares of Coca-Cola before the stated time period, has likely outpaced the S&P 500 with its Coca-Cola holding.
Despite underperforming the S&P 500, Coca-Cola's attractive dividend yield remains a draw for income investors. However, unless one focuses exclusively on dividend income, Coca-Cola stock may not be a suitable choice for investing one's cash.
Coca-Cola owns more than 200 beverage brands, including some of the world's most recognizable names. The company's stock can be identified on the stock market by its ticker symbol KO.
It's important to note that Berkshire Hathaway, which purchased shares of Coca-Cola before the second quarter of 2025, has not bought or sold Coca-Cola shares since 1994. As of June 30, 2025, Berkshire Hathaway still held 400 million Coca-Cola shares without recent additional purchases in that period.
The data for Coca-Cola in this article was provided by YCharts.
Coca-Cola's stock, currently worth approximately $4,270, has grown from an initial $1,000 investment 30 years ago, primarily due to cumulative dividend payments. Despite the company's status as a mature company due to its long history, Coca-Cola remains a significant player in the global beverage market.
However, the stock may not be considered exciting to watch for those seeking rapid growth. The current P/E ratio of 24 suggests that the market may have priced in much of the company's potential for future growth.
In conclusion, while Coca-Cola's dividend yield offers an attractive return for income investors, the company's performance over the past 30 years has been less impressive compared to the S&P 500. Investors should carefully consider their investment goals before deciding whether Coca-Cola is the right choice for their portfolio.
