Coca Cola (NYSE:KO) raised its dividend last week from thirty eight cents to forty one cents each quarter. The most recent dividend will be paid April first to shareholders as of March 15. Coca Cola has raised dividends thirty seven consecutive years. This shows the strength of the brand and company as many recent companies have cut or eliminated their dividend payments to focus on restructuring and raising additional capital.
In related Coca Cola news, Pepsi announced a deal to distribute Rockstar energy drinks. This brand was previously distributed by Coca Cola. The details are sketchy and just announced at this point. I believe this is Coke's decision to let one brand go (Rockstar which most recently lost market share) and bring in one (Monster which is gaining market share).
Vitamin Water continues to sell well as consumers shift from carbonated drinks to helathier options. The company has great athletes promoting this brand. The company has room to expand with new flavors and new sizes of the drink.
I recommend buying shares of Coca Cola below $45 with a target of $60 by 03/01/10. Also recommend buying shares of Hansen below $35 with a long term target of $50 (by a buyout of Coca Cola).
Stock position: None.