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Coca-Cola FEMSA: An Underrated Dividend Growth Stock


  • We initiated our KOF position back on February 12th.
  • Since then, the stock has crushed the S&P 500 while paying out a hefty dividend yield.
  • We review Q2 results and share our outlook moving forward.
  • Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our model portfolio. Learn More »
Production of soda bverages or cola. A row of bottles on conveyor belt in factory.
Bet_Noire/iStock via Getty Images

We initiated our Coca-Cola FEMSA (NYSE:KOF) position back on February 12th. Since then, the stock has crushed the S&P 500 while paying out a hefty dividend yield. In this article, we review KOF's Q2 results and share our outlook for the company moving

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This article was written by

Samuel Smith profile picture

Samuel Smith is Vice President of Leonberg Capital, he has a diverse background that includes being lead analyst at several highly regarded dividend stock research firms. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering.

Samuel leads the investing group High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The services also features regular trade alert, educational content, and an active chat room of like minded investors. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of KOF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (18)

Mr. Smith, if one purchases KOF ADRs is there any tax on the purchase of the stock itself. Are their withholding taxes on the dividends from a Mexican company? Thank you.
Samuel Smith profile picture
@Wolfram1964 there are foreign withholding taxes. I am not sure how the ADR fees work as I did not have to deal with them.
@Samuel Smith I checked the 20-F filed by KOF. Page 8.
Under Mexican income tax law, dividends, either in cash or in kind, paid to individuals that are Mexican residents, and to
individuals and companies that are non-Mexican residents, on our shares, including the Series L shares and the Series B shares
underlying our units, including units represented by ADSs, are subject to a 10.0% Mexican withholding tax, or a lower rate if covered
by a tax treaty.
What amounts do they have to pay to KO for using the franchise name?
Anything COKE is too WOKE for me. Sold all I owned when their wokeness came to light.
To say that "... As an added bonus for investors who care about technical analysis, the stock is currently enjoying a strong uptrend" is an understatement. This stock is technically on steroids! Back up the truck here.
Company looks interesting. Do you have a link to their
@Samuel Smith Dividend history.
Samuel Smith profile picture
@AlieGee that is a simple Google Search.
Agree with the author.
Sold for a little profit months ago but recently bought back in for long term.
Long KO and PEP (for a long time) but I like "big tech" more these days. WD
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