As Christmas is approaching, the sounds of the music rings in that the year is almost over. I am still sitting on a sizable cash position that I am looking to deploy into an undervalued dividend stock – the one with the right metrics, that shows undervaluation, is performing better than the past, etc. Furthermore, there are investors who have capital built up, including myself, and I never like to let cash sit idle. Given this, I am constantly trying to find the right company, to invest my money, to gain value and build a dividend income stream. In my attempt to find a consumer-based company, one that will generate significant volume and revenue when economic times are good and bad, I turned to an iconic branded company. This iconic branded company has been around for 130+ years and is also coined as one of the, “Dividend Aristocrats”, having increased their dividend for 25+ years. In fact, this iconic company has delivered a streak of 55+ years of increasing their dividend. Yes, I am talking about The Coca-Cola Company (KO).
The market is actually down now, year-to-date. Luckily, it’s not just one company here or there, that is bringing the whole ship south. Instead, there are a vast number of companies that are seeing their price movements turn downward, unlocking value in the market place. As dividend investors, this is news that we all love to see. When there are macro-events in the economy, such as tariffs, trade wars, interest rate movements and technology enhancements – this usually leads me to go into one direction, when evaluating what dividend stock to buy. The industry that has shown signs of value, for the price, is the consumer industry! I want to do a comparison of a few stocks within that industry.