3 reasons the fizz has returned for Coca-Cola Amatil Ltd

Shares in Coca-Cola Amatil Ltd (ASX: CCL) have been rampaging over the last two weeks or so, having soared from a low of $9.06 to a high just above $10 apiece. Although they have retreated slightly since then to currently sit at $9.70, there are plenty of reasons to suggest the stock is a solid bet for the long-term.

First and foremost, the stock has not traded this low since the aftermath of the GFC. For a company as strong as Coca-Cola Amatil, opportunities like these are rare to come by and made even more attractive by its bumper 5.2% dividend yield. Investors have likely recognised this and climbed aboard.

Secondly, while the company has struggled with pricing pressures from Schweppes, Woolworths Limited (ASX: WOW) and Wesfarmers Ltd’s (ASX: WES) Coles business, the tough conditions are likely only to last over the short-term, leaving a wide-open runway of growth for those patient to last the long-haul.

The most likely reason for Coca-Cola Amatil’s recent jump however, was Beam Suntory’s reaffirmed commitment to a 10-year venture with the company. The deal was extended until December 2023 and is expected to generate sales of around $300 million, according to The Australian Financial Review.

A value price tag + growth + big dividends!

Coca-Cola Amatil is an excellent bet for the long-term, but there is another, more immediate opportunity set for enormous returns.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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