Coca Cola - Investing Education in low interest rates

It's interesting to notice weird little things.

I am shocked right now that Coca Cola's bonds currently are yielding 2.4%, however the stock dividend is currently at around 2.8%.

Clearly the stock is a clear advantage over the Bonds because if anyone knows about Coca Cola it's risen it's dividend for the last 49 years or so.

So you can hold onto Coca Cola like you would hold onto a bond that is yielding 2.8%, but this dividend yield keeps increasing year after year.     It doesn't matter if the stock increases in value but it will because of Coca Cola's 8% grow in earnings each year.

Coca Cola's dividends have grown 9% a year over the last 8 years.

What this means if you hold onto Coca Cola shares for 8 years you can easily expect to get 5.8% dividend on a company that has done significant dividends increases and book value increase and earnings increases for years.  I also expect the stock price will double in that time because of their earnings history.

It wouldn't be a good time to sell that stock because you have the future growth from 2020 - 2030 as well and your dividend % keeps growing at the same time the stock is growing.

Buy and Hold of good companies with extremely long term competitive advantages are never a bad thing unless the valuation gets out of wack like it did in 2000.   I have a great formula I use for evaluating companies that Warren Buffett used.

Let me know if you want more information as I love to talk a bit about investing.