History Says Coca-Cola Stock Holds Up When the S&P 500 Falls
The drinks giant beat the index in seven of the market's eight losing years since 1980. But is this record worth around 26 times earnings?
Overview
Since 1980, the S&P 500 (SNPINDEX:^GSPC) has lost money in eight calendar years, even counting dividends. These years were 1981 and 1990, the three years from 2000 to 2002, and then 2008, 2018, and 2022.
In seven of those eight years, Coca-Cola (NYSE:KO) posted a higher total return (the change in the stock price plus dividends) than the index. And in five of them, the drinks giant's shareholders made money even though the market dropped.
Details
Averaged over all eight years, Coca-Cola's total return was around 1% a year, while the index averaged a loss of about 14%.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.