This Dividend King Has Entered Into The Costco Effect

"A Safe-Haven Stock That's Too Expensive"

As you know by my name, I love dividends. And in addition to sharing on here, I write regularly on the investment platform- Seeking Alpha.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $87.57

Dividend: $0.53

When I covered The Coca-Cola Company (KO) last October, I believed the stock offered investors little margin of safety after its strong rally. I’ll be the first to admit I underestimated just how well management would continue to execute.

Since then, Coca-Cola has once again exceeded expectations, significantly outperforming the broader market while delivering another impressive quarter of revenue growth, margin expansion, and higher earnings. In my opinion, management deserves tremendous credit for navigating a challenging consumer environment better than nearly every major competitor.

However, despite my admiration for the business, I continue to believe valuation is now the biggest risk. At roughly 27x forward earnings, I think much of Coca-Cola’s operational strength has already been priced into the shares, limiting upside potential over the next several years. While I remain extremely bullish on the company’s long-term prospects, I believe investors may be rewarded by waiting for a more attractive entry point.

Another Quarter of Outstanding Execution 🎯

Coca-Cola once again delivered a quarter that exceeded Wall Street expectations.

The company generated $13.4 billion in revenue, increasing 7.2% year over year while beating analyst estimates by roughly $230 million. Earnings per share came in at $0.97, increasing 11% from last year while also surpassing expectations.

Those numbers become even more impressive considering the environment in which Coca-Cola is operating.