Eivind Kallevik's Investing Blog

"A great business at a fair price is superior to a fair business at a great price." Charlie Munger.

Menu
  • Home
  • Resources
    • Books
    • Video Links
  • About
  • The Philosophers’ Legacy Portfolio
    • Costco Wholesale Corporation
Menu

Can I earn free Cokes by owning Coca-Cola shares?

Indeed you can! At least in a way.

You see, if you own shares in The Coca-Cola Company, in the KO stock listed on NYSE, you are a part owner of the business and you are entitled to its earnings. At least in relation to your ownership stake in the company.

It’s no surprise that the company has been earning lots of money every year for a long time. Part of the earnings have been reinvested in the company for further growth or share buybacks, the rest has been paid out as a dividend for its shareholders. That’s where you come in!

You can be an owner of The Coca-Cola Company because it is a public company. At least you can be a part owner. However large or small, each shareholder is treated equal in terms of ownership benefits per share.

Free Cokes you said? How?

We’ll they’re not really free, but if you were an owner of the business, you would earn dividends, and the dividends could cover your Coke consumption for a lifetime. That is to say if you have enough shares in relation to your consumption.

If you’re a US citizen a Coke serving of 16 oz costs about $1.20. Depending on your tax situation you’d need to have an incoming share income, dividend, of a bit more than that. Let’s say $1.50 of dividend income should be enough to be able to buy one serving of Coke.

The Coca-Cola Company pays a quarterly dividend of 40 cents per share and growing. That means one share currently pays you an annual dividend of $1.60, enough to cover the cost of a Coke after tax, and perhaps it also leaves you with some pocket change too!

I’m a big fan of the company (why else would I be blogging about it). Not only am I a consumer of its products, but I’m a part owner of the business too. I like to see that my ownership is big enough to cover my consumption of the products that I love. It’s not there yet, but it can be, and it could for you too.

Imagine having “free” Cokes for a lifetime consumption. You can build your Coke Earning Power over time, by gradually acquiring shares. And once you have enough ownership to cover your consumption, it doesn’t end there. It can be passed on. Your grandchildren can enjoy free Cokes as well. A form of generational wealth!

August 4, 2019October 18, 2019

Recent Posts

  • How’s the investing going?
  • Portfolio update – still beating the market
  • How to valuate a company with no equity? A brief case study.
  • How to calculate compounded annual growth rate of your portfolio (CAGR)?
  • The value of the The Philosophers’ Legacy Portfolio kept soaring through the crisis

Archives

  • August 2021
  • April 2021
  • November 2020
  • October 2020
  • March 2020
  • February 2020
  • December 2019
  • October 2019
  • September 2019
  • August 2019

Categories

  • The Philosophers' Legacy Portfolio
  • Uncategorized
©2025 Eivind Kallevik's Investing Blog
This website uses cookies to track how many viewers the blog has with the help from Google Analytics. It's anonymous of course, and I'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.