Besides being one of the most iconic brands in the world, Coca-Cola (KO) stock has boasted consistent returns for many decades.
The company went public in 1919 for $40 a share. Suffice it to say that a lot has changed since then.
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So if you had invested $1 in Coca Cola (KO) a century ago, how much would you have had today?
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Coca-Cola in 1925
In 1925, shares of Coca-Cola sold for $153.625, according to Coca-Cola’s historical reporting. Even then, it paid a dividend of $7 per share.
As of this writing, Coca-Cola trades at around $70 per share. But the company’s stock has split since 1925, and more than a few times.
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Stock Splits
Coca-Cola has split its stock no fewer than 11 times since 1925. An analysis by Nasdaq found that a single share of Coca-Cola bought in 1925 would have multiplied into a massive 9,216 shares today.
At $70 a share, 9,216 shares would be worth $645,120 today.
If you had bought only $1 worth of Coca Cola stock, that would be worth around $4,200 today. Put another way, you’d own around 60 shares today.
Ultimately, an investment that started at $1 and grew to $4,200 over 100 years delivered an annualized return of around 8.7%.
Dividends
Coca-Cola enjoys status as a “Dividend King” — a company that has consistently raised its dividend every year for at least 50 years. Not many companies can claim that title.
In Coca-Cola’s case, it can boast 63 years of consecutive dividend increases. And it’s been paying dividends since 1920. How many companies can say that?
Unfortunately, there aren’t accurate records of exactly how much those reinvested dividends would have added to your total return over the past 100 years. But if you owned 60 shares at $70 per share, at its current dividend yield of about 2.91%, you’d be collecting over $122 each year in dividends on your $1 initial investment.
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This article originally appeared on GOBankingRates.com: If You Invested $1 in Coca-Cola in 1925, Here’s What It’d Be Worth 100 Years Later
