Dividends Ahead, Is Coca-Cola At  Sale?

The Coca-Cola Company (KO Stock) is known for quenching thirst with its beverages and is a blue-chip Stock. In the world of investing, blue-chip are stocks that command a dominant position in their respective industries. The blue-chip stocks generally don’t offer explosive growth potential. Instead, they offer a unique blend of stability and reliability.

Coca-Cola (NYSE: KO) hasn’t been the greatest wealth compounder over the years. Down 6.69% Year-to-date, it pales in comparison with the S&P 500 gaining over 15% in the same timeframe. However, investors looking for a dividend stock can see it as a golden opportunity to scoop up a top dividend stock like Coca-Cola. 

The daily chart shows that KO’s share price bottomed out in July after declining from an annual high of $64.99. The price drop halted near the $60 level from where buyers took over the game and the price surged bottoming out.

Thereafter, the bulls took the price to a high of $63.27 ahead of the results. However, the price immediately came for profit booking post the results. Currently, the price has again reached the previous support zone of $60 from where the buyers may take over the game.

The Analysts offering 1-year price forecasts for Coca-Cola Company (KO Stock) have a maximum estimate of $76 and a minimum estimate of $63. The Coca-Cola Company engages in the manufacturing and marketing of non-alcoholic beverages. 

KO stock derivatives data states that the current implied volatility in the market is 12.47% with a decrement of 0.34% in the last trading session. The nearest support of $60 has 2967 open contracts on the put side and 1195 open contracts on the call side indicating the buyer’s domination at the current support and the price may go bullish on Monday’s session. 

Dividends Ahead, KO  Stock Price At A Discounted Price?

KO’s share price declined 0.87% on Friday to close at $59.31. The option chain data shows that the $60 level has the domination of buyers due to which the price may observe some buying volume on Monday’s sessions. 

The Company has yet to pay the dividends to the investors on 14th September (Ex-date). Hence, it may be a discounted price for the dividend investors to add the blue-chip stock to their portfolio. 

The price has reached a strong support zone from where it may get the buyers back and surge higher. Moreover, the stock seems to be forming a descending triangle pattern and currently trading at the support zone which may push the price higher to the seller’s zone. 

Technical Indicators Showing A Sideways Trend

As per the EMA analysis, the Coca-Cola (KO) stock price chart is showing a frequent crossover of EMA indicating the stock is following a sideways trend at the moment. 

The Overall technical opinion rating including RSI and MACD is 88% sell with a strong short-term outlook on maintaining the current direction. 

Conclusion

Coca-Cola (KO Stock) is a blue-chip stock that offers stability and reliability. The stock has declined from $64.99 to $59.31 this year, but it could be a good opportunity for dividend investors. The company will pay dividends on September 14 and the price has reached a strong support zone of $60. Analysts have a maximum estimate of $76 and a minimum estimate of $63 for the stock in a year. The stock may be forming a descending triangle pattern on the daily chart and may bounce back from the support zone.

Technical Levels

• Support levels: $59.02 and $57.90.
• Resistance levels: $61.55 and $62.97.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)