Although it seems that the time may have passed where investors could buy shares of Coca-Cola Amatil Ltd (ASX: CCL) for just $9.00, they are still presenting as an incredible bargain at today's price of $9.45!
The stock has received a welcome boost over the last couple of weeks and benefited even more recently after financial services group UBS upgraded the stock from 'Sell' to 'Neutral'. Although it has climbed 5% from its low of $9.01 to now be trading at $9.45, it is still sitting an incredible 38.6% below its $15.40 high in March last year.
Despite its recent struggles (or indeed, its even more recent climb!), investors should by no means write this stock off. Here are three reasons you should buy the stock, or top up on your existing stake today.
- Very few Australian brands can claim to be as dominant as Coca-Cola. While earnings have taken a huge hit thanks to a pricing war with Schweppes, the strength of the brand will help it rise to the top again over time.
- Although its dividend yield is expected to drop marginally as a result of the company's recent struggles, it is still forecast to distribute roughly 51 cents per share – a yield of 5.4%. That's not to be sneezed at, particularly in this low interest rate environment.
- Investing legend Warren Buffett bought his shares in Coca-Cola Amatil's parent company, The Coca-Cola Company, when it was also in a bit of a rut. And guess what, it's proven to have been one of his greatest investing decisions of all time. I've followed his example and bought into Coca-Cola Amatil recently, and think you should too.
An even better bet than Coca-Cola Amatil Ltd
