Coca Cola (NYSE:KO) is declining (38 $/share), while its yield is flirting with a 3 percent dividend yield. (2.91%)
According to fastgraphs, coca cola has a fair value of 31 dollar/share.
Personally I would set my entry point at a share price of 33/34 dollar a share, because the changes are not likely Coca Cola share price will drop to its fair value in the near future. In fact KO flirted at its fair value point in 2009, but it will likely not happen again soon.
Is 38$ a buy or should one wait until it drops further?
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.