Coca-Cola Amatil Ltd (ASX: CCL) shares have jumped 30c or 3.1% today to be sitting at a price of $9.84. Although it is a nice jump for new shareholders, it still comes as little consolation to long-term shareholders who have watched their shares fall from more than $15.00 a little over 12 months ago.
While there has been no news released today that would have driven the shares upwards, here are three other reasons they might have jumped:
- The company’s new Managing Director, Alison Watkins, is making radical changes at the business. Although there are no quick-fixes, the business will be simplified to increase productivity and efficiency.
- As far as strong businesses go, it’s difficult to look past Coca-Cola Amatil. While it has endured tough conditions over the last 18 months or so, investors may have recognised the bargain price-tag on the stock as a can’t miss opportunity (indeed, the company’s shares haven’t traded this low since 2009)!
- The bumper dividend offered by Coca-Cola Amatil is also very attractive. It currently yields 5.3% (franked at 75%), which is attractive by all investors’ measures.