KO

abroadbroadband

They're gonna call the lightning fake news and we'll have the first KO by electrocution tonight

Curious-Bird-8159

Only -225 topuria KO?! Easy money

No-Improvement3164

KO at ATH. GIS is in the dumpster

Ready_Scratch_1902

Lou mannheim called.  Told me to rotate into KO GIS 

Real_Passenger4282

Hey, props for starting at 18 — that compound interest head start is going to be huge. A few thoughts: On the broker question: Robinhood is fine honestly, especially with the 3% Roth IRA match. Fidelity and Schwab are the other popular picks — better research tools, more reliable customer service, and no PFOF concerns. But don't overthink the broker part, it matters way less than what you actually buy. On your strategy: You said growth + dividends and "a bit risky" — those kind of pull in different directions, so here's how I'd think about it at 20: * Roth IRA → max this out first ($7k/year). Since you won't touch it for decades, go heavy on growth here (VOO, QQQ, or individual growth stocks). The beauty of a Roth is you'll never pay taxes on the gains. * Individual account → this is where dividend stocks make more sense. Build a portfolio of solid dividend payers (think SCHD for an ETF, or individual names like O, KO, JNJ, ABBV if you want to pick stocks). Reinvest every dividend while you're young — the snowball effect is real. For learning: * "The Intelligent Investor" by Benjamin Graham (the classic) * On YouTube: Joseph Carlson has great content on dividend portfolio building, very practical * r/dividends is a solid sub for that specific strategy One thing that really helped me stay motivated was actually tracking my dividend income month by month. seeing that number go up every quarter keeps you disciplined when the market dips. You're asking the right questions at the right age. Just stay consistent and don't chase meme stocks with your core portfolio. Good luck!

greenpride32

To be fair, the share price of any other stock would have cratered. 350 p/e. 2024/25/26 is more or less flat revenue. Loss of EV credit handout kills their margin and profits. TLSA makes $4b in profit, it's worth $1t. SPCX loses $4, it's worth $2t. KO pays out twice the amount of TSLA profit in cash dividends each year, but it's worth a fraction of it. Meanwhile your other SP500 top 10 weights are making $20-100b+ in profit each year. Which ~~one~~, two don't belong?

Fragrant_Question358

Europoors ans their silly games like fifa is going to raise the price of KO and MCD. Get in before its too late. 

rocier

I'll have some more KO and T thank you very much

Mr_Zamboni_Man

Just keep rolling OOM KO calls 0dte its gonna pay bro I promise

MagicJuggler

Everything else dumps...and KO bounces. KO is truly the stablecoin of the market.

Molten-Helldiver

Maybe my KO calls are cooked if the rest of the market going up..

TastyToad

Got out from semis last week after barely breaking even on $AVGO (held too much through earnings). Riding healthcare ($UNH - exited today, $CLOV) and consumer/entertainment ($KO, $NFLX, $WMT) with a sprinkle of retardation ($GME, $OPEN) on top. As always, tomorrow I'll feel like a genius or say to myself "this was obvious, why didn't I see it". Welcome to the casino.

SteakEater137

AI trade spooked. NVDA’s forward PE is contingent on AI CapEx, KO’s forward PE looks more “guaranteed” Not that I even agree necessarily but thats the narrative today.

empty-bensen

KO does not concern itself with the problems of the market.

Molten-Helldiver

Made 98% on KO today…I’m out

nad242

Be careful, you'll get KO'd in the first round.

MakeOSUGreatAgain63

Go buy KO and COST instead u tard

ThanksDependent1001

Man I’m right there with you. Down from 100k to probably under 30kwhen my puts fail tomorrow. Trying to hang things up officially after losing 25k today. I flipped the last amount I have left to only KO and Ford. Good luck man.

greenpride32

At the IPO price, SPCX is being valued close to what AVGO is worth and more than META. SPCX lost about $5b last year. Meanwhile AVGO makes over $20b in profit and META over $60b in profit. AVGO earnings growth is very high and expected to remain that way for some time, hence the valuation differences. So in SPCX you are buying a comparatively overvalued stock by any and every measure, and only comparable to TSLA. TSLA by the way makes 4x less profit than KO, but valuation is 4x more. Forget about even trying to compare TSLA to AVGO META and the true mega caps.

Gangnam_style_gaming

Exact same situation today, but with more profit/loss. I got gradually more greedy these past few weeks and I essentially spiraled and lost my own integrity. The reason I wanted to trade is because I study and just have a sidejob, so there’s not any steady income. I figured I had money, I might aswell let that money make more money, but I started being too hands-on with the whole trading thing. Bad trade after bad trade, more and more volatile. I’m going to graduate, get to work (it’ll be easy to get a well-paying job in my situation), and invest monthly into a pie consisting of a few % of smaller stocks and something like the S&P and perhaps something stable like KO. I am leaving this trading shit behind

rafaelnmartins

KO going up today 1.7% as NASDAQ goes down....

Moist-Guava-732

so damn annoying that my value plays can only go up when tech goes down KO and WMT only green when semis red

ninja_mon

KO is recession-proof 🤣

Namtabmal

Its fucking hilarious seeing people rushing to buy KO and other consumer defensive stocks when their P/Es are higher than the ones they are selling to buy them. Hahahah

AlGAdams

You know when KO and Mils are mooning something aint right in AI town

Molten-Helldiver

I didn’t buy KO calls this morning…I belong here

enjolras348

Exact same pattern as Friday. Boring ass consumer staples are up crazy numbers (yes 1.5-2% is crazy for KO, PEP, JNJ,O)

ChucktheDuckRecruits

I’ve decided to protect my gains by adding some boring defensive positions: JNJ, PG, PEP, KO, WMT, VT. They will all just keep on their slow upward march and avoid any 20% crashes. Sleeping very well at night.. I’m not selling my AI/semi winners, just not chasing them right now until my portfolio is more balanced.

Jarlaxle_rigged_it

blew a small account Friday trying to BTD on MU with a KO certificate i thought was safe (865). Its up 16% since. never trade knockouts regards

Competitive-Drink215

Should I buy KO?

chf_gang

At this point you can’t avoid exposure to AI if you are looking for growth. You either have to just save your money or buy defensive staples like WM or KO. Almost every company is leveraged into it, even if they aren’t actually a tech company. If AI crashes literally everything will be affected.

Effective_End8731

A pile of cash can't be undervalued or underprice so I really don't know what we're talking about at this point. I do at this point feel like you're arguing for the sake of argument and have lost the plot of your own original question as you weren't ever originally talking about a pile of cash and now you are talking about a pile of cash but trying to attribute market attributes on an asset to a literal pile of cash which does not have market attributes - a pile of cash cannot be undervalued. So here is your original question broken down with specific responses: \---------------------------------------------- "I'm a big believer in value investing and Warren Buffett's ideas of buying companies for less than what they're worth. But here's the part that I could never wrap my head around... Let's say a company's "intrinsic value" is $200 per share, but the stock price is $100/share. Ok, so that's a good buy then, you're buying "a dollar for fifty cents", as Buffett puts it." "But, in order to make money, the PRICE needs to go up, because you need to sell it. You only own a tiny fraction of the company, so you don't actually receive the cash flows yourself. So if the market stays irrational and the price never catches up to the intrinsic value, you could still lose money." (This is where price is important, price is the perception of value someone is willing to pay for. Prices can be irrational and they can stay irrational indefinitely. Just look at the prices of the mag7 - they are pricing in for an expected future valuation that is massively variable because it is different in everyone's head what they could be worth in 3 to 7 years.) "Now if you had a controlling share of the company, or wholly owned the company, those cash flows would be yours and the intrinsic value is all you care about. Warren said he doesn't really care about the stock price, he just wants to own good businesses... That's great if you can buy the whole company outright, but let's say his KO shares went down fifty percent and stayed there for decades, not keeping up with its intrinsic value... wouldn't that impact him as much as any other investor??" (yes it would impact him as much as any other investor. If you wholly owned the company it wouldn't be on the stock market, it would be a private company. If you wholly own all shares - you do not care about the intrinsic value because you must sell those shares and as you sell them price discovery will happen and the price will fall. You still care about the perceived value of the shares and if its a publically traded company. If Elon Musk tried to sell large portions of his shares it would literally tank the price of his companies and their current price based market cap, because the price would fall as everyone is not willing to buy at the same price. I feel like something's missing here, what force is there in the market to keep the price and the intrinsic value close to each other? Is there some arbitrage I don't know about? Can't a stock just be mispriced forever? Or are value investors relying on faith that price eventually catches up to intrinsic value? (yes a stock can be mispriced forever. Value investors are relying on faith that price eventually catches up because they believe in certain theories about that market that the price will eventually come to fruition but that is a theory. That's why its the value investor thesis. Warren buffet bought good businesses because he assumed that good business with good operations will grow or continue to generate revenue. He was not a speculative investor. He did not win on every trade he made, sometimes a company will change management or pivot its goals / operations before the price catches up. Value companies are not doing as great now because so much capital is being poured into a yield hungry market - value companies tend to do better when growth slows down or turns down and people start looking to other parts of hte market for returns.)

midwesternvalues73

I guess Buffet was right on that KO being a good pick

spanishgypsy

Look at the classic bearish pattern forming on KO chart and then we’ll talk

spanishgypsy

Do you see that massive head and shoulders pattern forming on KO? You can short that piss water all the way to $70

kingofwale

KO is a consumer defensive. It’s supposed to go up in times like this. I’m surprised a option trader didnt know that…

Puzzleheaded-Tax6168

Money fleeing for safety. KO is safe.

occurious

High dividend yield correlates very strongly with lower total return for long term positions. If the yield is larger than sustainably profitable companies like KO, then they are likely doing something unsustainable financially. There’s no magic. Dividend stocks have lower average returns than the market. If you focus on value stocks instead you will get a similar exposure but with a factor that actually carries a return premium.

rafaelnmartins

I've been following Coca-Cola stock (KO) for years, and I've noticed an interesting pattern: when the Nasdaq performs strongly, Coca-Cola tends to lag, and when the Nasdaq struggles, Coca-Cola often does better. Recently, Coca-Cola seems to have broken out of its bearish trend and has been showing strong recovery over the past few weeks. To me, this suggests that investors may be rotating back into more defensive stocks, which could mean it's Coca-Cola's turn to outperform while the Nasdaq faces some weakness. Of course, correlation doesn't always imply causation, but the recent price action is making me pay close attention. Is anyone else seeing a similar rotation from growth into defensive names like Coca-Cola?

TheGodPePe

I have friends who use TradeRepublic, it seems to be the best for new users in Germany, especially if you don't want to do KO deviates and just want to buy stocks. Personally, I use Interactive Brokers since I am an American Citizen and they can give the IRS info that other banks/brokers cant

Whiskeysip69

you talking KO the stock or literally hold coke

sachblue

Only 5.59% down. I got KO and O rescuing my portfolio 😆

RayU_AZ

I had some cash sitting on the sideline and bought some Tech & stock chips on the big dip today to finance my ROTH IRA for thsi year, $8,000, at the closing bell around 3:20. Tech and chip sectors got killed today. The usual defensive sectors were up today, consumer staples, Utilites and heathcare. Banks & financials broke even. I have some value stock that did okay today. Morst of my stocks were down versus up. It's good to have some diversity and not be concetrated in a single sector, SOXX. The Invesco large value cap ETF, PWV, held it's own today, slightly up. * WMT +0.97% * KO 3.5% * UNH +0.75% * Visa +1.1% * RTX +1.3% * FDX +0.91%

EmpathyFabrication

Monster is defensive and Coca Cola KO is a major shareowner

Accidental-Genius

KO, PFE, WM, AVY, TMO, DHR, Or just SPHD to ride out the storm.

Professional-Sell136

 My port is very diverse, everything from weed stocks to bug spray companies. Out of all of my investments, only 2 came away unscathed from todays market bloodbath. KO & LFVN. What a week, what a closing, this is really happening and most likely next week. Have a great weekend, Gentlemen, you all deserve it.

Legendary_1978

Consumer staples did pretty well today. Made some money on KO and PG.

allenk24

KO too

MetalEnthusiast83

Hey at least KO is up.

LabyrinthLayers

Boomer - $KO, $CLX, $WMT, retard $SG

WallyWally12345

If you’re a perma bull just buy KO, COST, and WMT calls on days like these

ktmusic90

KO Rip sto m market m after this Friday

Bilbo_Butthole

Yeah…this is WSB, not fucking value investing. This is the most anticipated IPO in history and has absolute retard strength behind Elon cultists. Swing trade and make money or go buy $KO and gtfo of here

BeneficialNews2892

Just threw 2k into KO wish me luck!

sylphvanas

One of the biggest red candles ever on a boomer stock like KO. What a joke

Lopsided_Process5141

Time to move into boomer DOW stocks like JNJ and UNH and KO. As the AI hype train fades profits will move into safe bets until the next pump.

MagicJuggler

I chose a helluva time to sell a put on bmnr. Fell straight through the floor of its February low. Mainly hedged by selling puts on consumer defensives like HRL or KO. Either risk on or risk off

Various_Couple_764

Dividend funds have higher share price stability and then most dividned funds or stocks continue to pay during market crash. For example T and KO continued to pay dividends when the stock market was down 50% that year. In general in bull markets growth fund does best. In Bear markets (especially ones that last more than 2 year Dividend fund do best.

Various_Couple_764

T is AT&T KO Caca Cola Both are companes.

greytoc

You are kinda comparing apples and oranges. You have to understand the underlying reason for why a dividend is being issued. Both T and KO are companies with a business which generate income and that income is returned to shareholders in the form of a dividend. However - GAB is a CEF - ie. a closed-end fund. It's an income fund which where the investment style is to invest in companies that the fund managers believe are under-valued. But the fund has a 10% distribution policy so the dividends are guranteed. So if the fund's investments are poor - it will get reflected in the NAV. Dividends aren't free money - those distributions will always impact the fund or company distributing the dividend.

bellboy718

KO

Little-Revolution650

AMZN, GOOGL, NVDA, KO, CAKE, EME, are some that come to mind. While there’s no way of knowing the future and no stock is truly ‘safe’, broad exposure from index funds, dividend funds, and ETFs are the most stable path toward wealth.

Chaba234

Im close to KO with my RKLB longs. Please be gentle asia and europe

eireniconic

My uncle warren recently retired. He never comes to the family reunions. But now that's he's not working all the time, he took me out to his favorite restaurant (mcdonalds) and he bought me a fish fil-a and a coke. I haven't talked to him much but apparently he was quite an investor back in the day--stocks like KO, Geico, See's candies--that kind of stuff. Anyway, he gave me some very sage advice: plow all my money into SPCE(X)!

NvizoN

Hey everyone. I'm not new to investing and have been doing pretty well, but one thing I've never quite been able to figure out is why people recommend investing in companies like AT&T or KO or other consistent dividend stocks instead of higher yield dividend stocks like GAB or USA. The only thing I can think of is consistency. T and KO are unlikely to go anywhere. But the amount you get in return is very low comparatively. For instance, I have 91 shares of GAB offering $13.66 a quarter in dividends and the market value is only $508. But I also have 26 shares of T offering $15.82 a quarter, but the market value/cost on that right now is $1404. I get that dividends aren't usually what people go for when they're younger, but I try to be diverse just in case, and this is one thing I can't quite figure out why one type tends to be recommended over another.

DahDollar

I'm a chemist who used to do heavy metals analysis. I can vouch for the higher metal load in plant proteins, it's cause they grow in the dirt. But premier protein is dogshit, fairlife is fair superior in every metric. Calls on KO

NativePlant870

KO RE A. Those guys know how to pump

aabbcc_gei

which company will be the biggest sponsor of coming UFC at WH 1. coca cola $KO 2. Brawndo  $BR make your bet ☝️🥺

Substantial_Ring9690

I’m one. In 2000 I owned all the go-go dot com stocks and the older guys owned KO, JPM GM. I got my ass handed to me (-75%) and they were down 8-10%. This bloated bitch is gonna blow at some point.

certifiedtoothbench

COKE, the coke consolidated company. Not KO, coca cola. I bought in at like $650 before the 10:1 split, I’m up at like 128% in a little over 2 years. Not as great as some people here but pretty good for someone who picked it at random.

sunset117

Way back I bought coke instead of KO , 🤦‍♀️

bc531198

The secret backbone of AI? Coca Cola. Everyone’s obsessed with chips and power. But AI data centers generate insane heat. You need massive, reliable cooling and supply chains that never fail. Coca Cola isn’t just soda. It’s one of the world’s largest operators of refrigeration, water purification, and temperature-controlled logistics. The same infrastructure that gets a cold Coke to every corner of the planet is what hyperscalers need for next-gen immersion cooling. AI buildout is exploding. KO is trading below its 5-year average P/E. While Wall Street chases GPUs, I’m looking at the company that already mastered cooling at scale. Not financial advice. Do your own diligence. \#AI #DataCenters #Investing #CocaCola

Beginning-Fig-9089

KO

Jdog86788888

Well it depends what your goal is. If it’s income, I’d say O or KO. If it’s growth and just let it ride, I’d say NVDA. If it’s just a regular hold and chill path: VOO. And it depends the account: Roth vs taxable.

bigmphan

They did. Not sure if they still hold a lot of Occidental Petroleum- but the energy play is still playing out. I’m eager to see what moves Abel makes. AAPL KO AXP is a good core and all, but damn Greg - let’s ride this wave.

Heineken_500ml

Invest in KO The world will run out of clean water. The only thing that can save us is a huuuuge coke bottle that can intake ocean water and sewers and filter everything into Coca cola Coke will replace oil, gas, water, your blood. SpaceX will have to run on coke this is a generational opportunity

FinancialWarthog6738

So Walmart is out here spending half a billion and Tesla is like “here’s couch change.” This is why every boomer portfolio on earth is 40 percent KO and WMT lol. Nvidia printing money so fast they barely have time to call the ad agency.

Think_Currency_8586

Invest 200k into KO stock their dividend yield is about 2-3% right now. That basically pays all the interest. And then if the stock goes up you make money on it if not well idk.

p3ngu1n5

Nah fuck them for wilfully sending tech to russians that is then used to kill Ukrainians. If you have been living under a rock - https://youtu.be/Fp5m0AzwsPk?is=4KO7REcLobreaRh0

Various_Couple_764

If you baught one share of BRK-A in 1970 the $50 you spent would be worth 729K today. What you don't understand is that value investing is about buying low cost stocks that pay a dividned. A long time ago Warren purchases KO (Coca Cola) shares. today each year Berkshire hathaway receives an 800 million dollar dividend from the KO stock it still holds. Cash BRK has used to buy an a lot of small companes most people will recognize today. In short Warren Buffet got rich by buying low cost stock that paid a dividend. And he holds this stock a long time. And he uses that money to completely buy out other companies And those companes no pay out there profits as a dividend to Berkshire Hathaway. Yes Berkshire Hathaway doesn't itself pay a dividend but that just makes the BRK-A or BRK-B very tax efficient toehold over a long time and as a result . You are a growth investory have been told dividneds are meaningless by other growth investors. And you always look at the same price. Not the dividend. Overtime those dividend generate far more cash then the . money spent to buy the stock. There is a lot to investing other than just grwoth. It is time you start leaning more about investing. Investors have een invsesting for dividends for about 400 years. hohn D Rockefeller made 300 million buy building standard oil into a monopoly. By order of the US government he had to retire from managing the the company and it was broken up int.o multiple componentanes of which he was a major share holder in each. So overnight he became a dividend investors 2 years after thebreakup of standard oil his net worth passed 1 billion. and at the time of his death his yearly income was 33 million from dividnends.

Rez425

I’m still regretting not jumping on KO IPO when I had the chance..

Ahamadrayasbaboon

We’re talking about a tenth of a percent. NVDA would have to draw down to a share price of $10 (no splits) and keep the same absolute dividend per share for it to have the same effect as a dividend has on KO. 

419Penguins

Mhmm, doesn’t nvida have a insane amount of shares, for a Trillion dollar company, it should have 5-10x the shares KO has. So it might be paying more in dividends bc it has a lot of shares.

banditcleaner2

22 p/e because they have no new innovative ideas on the horizon. at this point META really should just become a giant dividend paying social media conglomerate. maybe chase some innovation, but otherwise the dividend should be increased to match something like KO

huehuehuehuehuuuu

In case you didn’t catch on, this grandfather also trafficked girls from the low income families in his town. He. owned. their. daughters. They were part of the goods being traded between the gentry. His serfs paid him with their children when they were short on rent. He traded the extra girls he didn’t want for art and calligraphy pieces. This was the pre-WW2 good old days. My coworker both loved and loathed her own grandfather, who according to her was a cultured patron of the arts, a poet, a gentle old man, and a human trafficker who had to flee his homeland because new management took away his town and tried to arrest him. To his deathbed he didn’t think he did anything wrong. She was lamenting how we’ve come to full circle with the he who didn’t KO himself files. So yeah, you don’t need a middle consumer class to keep a country going, and to keep a small upper class very very rich and comfortable. They don’t need your money when they own you entire. You are the literal goods. Your time, your skills, your labour, your children, your physical body.

Improv13

Part, not nearly all. The average inflation rate since 1929 is a little more than 3%. Take a company existing since 1929, like KO. Market value in 1929 was $140 million. I today’s dollars, that $2.8 billion or so. Coke is valued at $350 billion today. Inflation had little to do with that increase.

justin_b28

next time around, only cash out what you put in plus say 20% for some profit, the rest is house money and let that shit ride. Been very happy with this, the caveat is sometimes I kick myself in the ass for not having more shares of the one thing like KO and LLY KO is boring as hell, but it has earned me a lot of money over the last 8 years or so LLY I got on one of the COVID dips (not the big big one). Started with 100 shares, sold half to cover, then rode out 50 + DRIPs. Sitting now at 70 shares just from dividend reinvesting. KO is similar, just DRIP those quarterly payments

coregamma

Fun idea. I used my chatbot and backtesting tool to help me build a portfolio excluding tech stocks because of AI overvaluation worries. It helped me derive 8 stock picks and I selected the portfolio weightings: DUK 13% WMT 15% T 12% NEE 12% PG 14% KO 14% MRNA 10% LLY 10% Backtesting the portfolio over 10 years yields an 11.31% Alpha over the SPY ETF, Beta of 0.41, Sharpe 1.96, CAGR 13.76%, and Max Drawdown -50.55%. Total Return of the basket 262.81% vs SPY's 251.50%

Equivalent-Coat-7605

June 10th I get the most recent one I’ve just been buying more. The shares paid for themselves and I sold the initial buy in. Just riding on profits. Similar to KO and TM for me.

No-Improvement3164

Mango drinks KO is the only thing I can tell.

No-Improvement3164

How is KO outperforming Amazon and Microsoft

LumpyShock9656

Because investing usually refers to buying great companies and holding them over time. Think Buffett with KO and AAPL. That's where the real money is made. Let compounding do the work. I have no issues with people trading and making profits, but don't call yourself an investor if you can't have a longer time horizon. As for my performance I don't know why you'd bring that up, but I'm doing quite well thank you. I'm up 30% over the last two years (that is while significantly adding capital over all months)

Substantial-Use-2867

To be fair, if you had 10,000 bucks in 1919 when KO hit the market, you were already rich. It'd be the equivalent of someone having \~200K to drop on a stock today.

No-Improvement3164

Home Builders and Staples other than KO for some reason

_The_Jerk_Store

KO? What’s the play here with this one? Genuinely curious

ThetaEdgeHQ

The piece worth pulling apart is the actual return on risk capital. SPX 6/18 5920 strike right now is roughly 5 mid, so 500 dollars credit per contract. Reg T margin sits around 20k+ per contract because notional is near 590k, so true monthly yield is something like 2 to 3 percent before any breach, which is fine but not the free money the framing suggests. The deeper issue is you do not need a 20 percent move to lose. A 6 to 8 percent drawdown with a typical vix spike from 14 to 28 expands the put price by 4x or more even with the strike still untouched. The roll at 1 week left either eats that vega hit at the worst moment or rolls into a credit that no longer reflects favorable risk reward. The rare drop framing focuses on the strike breach which is the wrong KO. Sizing is the only real lever here. At 5 percent of NAV per cycle it is a yield enhancement on the SGOV equivalent cash that backs the position. At 30 percent it is the credit trading equivalent of writing insurance you cannot pay claims on. The upthread point about waiting for an iv regime above 20 before deploying is the right frame, but it also means this is not a consistent monthly income strategy, it is an opportunistic vol selling strategy that sits idle most of the year.

craytheon

Healthcare and Consumer Staples like KO, Pep

MattieShoes

He doesn't really like to receive them. All else being equal, dividends can be neutral or negative from a tax perspective. If you were going to sell shares to recover some money, then receiving a dividend less than the amount of money you were going to recover just means you sell less shares, and the tax consequences work out about equal. neutral If you weren't interested in pulling money out, you'd want to reinvest the dividends to buy more shares. But dividends generate a taxable event and you have to pay capital gains taxes on that dividend money even though you weren't looking to liquidate. So that's why his company doesn't pay dividends -- tax efficiency. If KO wasn't paying out 2.5% or whatever it currently is, then you'd expect their share price to increase by that much instead. Buffett would be perfectly fine with that outcome as well. More generally, Buffett is a value investor -- he wants companies that make steady profits. That's the same group of companies that typically produce dividends. That's why most of the stuff he owns produces dividends.

greenpride32

>An increase in market value represents a change in perception It isn't perception, it's earnings. SP500 collectively makes over $2t in profit each year. That number has steadily increased over time. The SP500 also pays over $500b in cash dividends each year. Again that number has increased over time. The value of the equity increase because more profits increase valuation of the company and or increase in distributions increases the value of the equity. Take a very conservative stock such as KO. 15 years ago, a single share would have paid you about $1 in dividends each year. Today it pays a little over double that. Naturally people are willing to pay more for the shares. Just imagine an extreme case where profits went up, so distributions went up, but share price did not. Well KO would be paying over 100% yield - of course it does not make sense.

BWright79

ATT and KO adjust with inflation and put money in your account every quarter that you can use to reinvest. They're show-ers, not growers.