Did you know?
Coca-Cola started in 1886, when pharmacist John Pemberton created a caramel-coloured liquid and combined it with carbonated water.
The rights to the formula were bought in 1888 by businessman Asa Griggs Candler for just $2,300, and the Coca-Cola Company (KO) was subsequently incorporated in 1892.
In 1919, a group of businessmen purchased The Coca-Cola Company from Candler for $25 million. Later that year, Coca-Cola made its initial public offering (IPO) on the New York Stock Exchange (NYSE), for $40 per share.
The stock has split 11 times over the years. Unfortunately, a stock split is not free money. You receive more shares, but the stock price is cut proportionally so that the value of your investment stays the same.
With that said, your one share would be the equivalent of 9,216 shares today with those stock splits.
As of the 2016 annual report, Coca-Cola shares have risen so that the company’s market capitalisation is roughly $180 billion and it has had 53 consecutive dividend increases. At the end of 2015, one share of KO stock purchased in 1919 (with dividends reinvested) would have been worth $12,748,802, an annual growth rate of 14.11%.
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