Coca-Cola: Fair Value Is About $46 From A Dividend Investing Perspective

The share price of Coca-Cola Company (NYSE:KO) has recovered from a recent pullback. Despite trading close to its 52-week high of $42, I believe the stock remains a buy for long-term income investors as its current valuation is still well below intrinsic level from a dividend investing perspective. In this article, I will illustrate some cash flow and dividend analyses to support my buy thesis.

In summary, from a dividend investing perspective, shares of KO are trading below their intrinsic value, even with some conservative assumptions. Given the estimated value gap of approximately 9% and the stock's 2.9% dividend yield, the notable return potential should substantiate a buy rating. The share price of Coca-Cola Company (NYSE:KO) has recovered from a recent pullback. Despite trading close to its 52-week high of $42, I believe the stock remains a buy for long-term income investors as its current valuation is still well below intrinsic level from a dividend investing perspective

Source: Seeking Alpha

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