Why Coca-Cola FEMSA (KOF) is an Excellent Stock to Buy?

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KOF Stock
KOF Stock

Coca-Cola FEMSA (NYSE: KOF) is a giant in the beverage industry. The company holds a broad portfolio of beverages. They include colas, flavored sparkling beverages, and still beverages. It’s the largest franchise bottler of Coca-Cola beverages. The company has a presence in most the South American countries, including Mexico, Brazil, Argentina, Venezuela, etc., and is headquartered in Mexico City. The beverage industry is considered a recession-proof industry, as no natural or human-induced calamity, can diminish the thirst of individuals. Hence, the beverage industry has always thrived and would continue to do so in the unforeseeable future.

KOF Developments

In recent years, Coca-Cola has been known for its efforts toward corporate sustainability. The company has aimed at achieving the sustainability goals via its contribution to the sustainable development objectives of the UN. In this regard, recently, the company announced that for the second consecutive year, it was included in the S&P Global Sustainability Yearbook 2022 as a result of its excellent performance in the Corporate Sustainability Assessment (CSA). The company was the only Mexican beverage company included in a list comprising more than 7,000 companies.


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KOF Valuation

KOF has an outstanding market capitalization of $94.64 billion, which is among the best for the companies indulged in the beverages business. The beta value of 0.86 depicts that the company is on the lower side of the volatility index. The average trading volume of KOF stock currently stands at 122,300 shares, while it has an excellent price to earnings ratio of 15.30, which depicts that the share price has grown in the recent past and is expected to rise further in future. The dividend yield of 4.3% suggests that it provides handsome dividends to the investors; hence, it could be an excellent candidate for dividend investing.

Final Remarks

Over the last few years, KOF has been excellently executing its strategic goals and objectives. This has made it an interesting value investment for investors. For analysts, KOF stock is expected to rise by 16.5% during the next four years. Moreover, its high dividend yield makes it an attractive stock for investors.  

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