The Coca Cola Company (KO) has been another consistent stock performer in the Own Every Stock Portfolio.  Year after year, Coke continues to produce steady revenue and profits, while increasing their stock dividend every year.  However, unless the company's fourth quarter widely beats expectations, Coke will have its first year over year drop in revenue in many years.  Nevertheless, one of the world's most well know logos and brands, Coca Cola, has held up much better than most companies through the recession.  Over the past several months, KO stock has steadily climbed, continually making new 52 week highs along the way.  Today, Coke's stock closed at 59.11 after reaching an intra-day high of 59.40, both of these respective numbers represent the stock's 52 week highs.  The stock may be getting a little ahead of its self fundamentally, but solid earnings growth are expected in 2010, so expect the forward looking PE number to gradually move down unless the stock price continues to soar.  Even at its current levels, Coca Cola's stock is priced at a very similar valuation to its nearest competitor, Pepsi.

Of course, another reason investors have liked Coke's stock over the years is its consistent dividend growth.  For the past 47 years, The Coca-Cola Company has raised its dividend every year.  In the chart below, I went back to 1975 to show what the split adjusted annualized dividend was and the subsequent dividend percent increase amount.  Since 1975, KO stock has had 5 stock splits, turning every share a person owned in 1975 into 48 shares today.  In 1996, 1992, 1990, and 1977, Coke's stock had 2 for 1 splits, while in 1986 the stock split 3 for 1.

The Coca Cola Company's Historical Dividend Increases (split adjusted)

Year	Yearly Dividends            Paid	Year over Year    % Increase	Year	Yearly Dividends            Paid	Year over Year    % Increase
1975	$0.0479		1993	$0.34	21.43%
1976	$0.0552	15.24%	1994	$0.39	14.71%
1977	$0.0642	16.30%	1995	$0.44	12.82%
1978	$0.0725	12.93%	1996	$0.50	13.64%
1979	$0.0817	12.69%	1997	$0.56	12.00%
1980	$0.09	10.16%	1998	$0.60	7.14%
1981	$0.0967	7.44%	1999	$0.64	6.67%
1982	$0.1033	6.83%	2000	$0.68	6.25%
1983	$0.1117	8.13%	2001	$0.72	5.88%
1984	$0.115	2.95%	2002	$0.80	11.11%
1985	$0.1233	7.22%	2003	$0.88	10.00%
1986	$0.13	5.43%	2004	$1.00	13.64%
1987	$0.14	7.69%	2005	$1.12	12.00%
1988	$0.15	7.14%	2006	$1.24	10.71%
1989	$0.17	13.33%	2007	$1.36	9.68%
1990	$0.20	17.65%	2008	$1.52	11.76%
1991	$0.24	20.00%	2009	$1.64	7.89%
1992	$0.28	16.67%

Moving forward, I expect The Coca Cola Company to continue to steadily grind its way forward with improving earnings and yearly dividend hikes.  One potential road block for the company could be a proposed tax on soft drinks.  However, just as the tobacco companies continue to pass the taxes on to the consumer, I would expect the large beverage companies to do the same.  At some point, higher prices may lessen demand, but the energy drinks don't seem to have a problem selling product at higher prices, albeit, not at the quantity Coke's sells its name brand soda.  Thanks for stopping by my blog, and please be sure to due your own investment research before making any investment decisions.