Coca-Cola Adopts 1990's Strategy: 2-for-1 Stock Split (KO, PEP)

Retail

Published: April 25, 2012 9:23 am

Last Updated: April 27, 2020 7:15 pm

The Coca-Cola Company (NYSE: KO) is going to try a new strategy that we have not seen from the company since literally the 1990s… It is splitting its shares.

The company’s board of directors announced that it has voted to recommend a two-for-one stock split. While this would be the first split in 16 years, it is the 11th stock split in its 92-year history. The company will effectively increase the number of authorized shares from 5.6 billion shares to 11.2 billion shares and this and other matters will be voted on at a special shareowners meeting anticipated to be held on July 10, 2012.

Keep in mind that Pepsico, Inc. (NYSE: PEP) reports earnings this week. Pepsi’s dividend yield is 3.1% and Coca-Cola’s dividend yield is 2.8%. It has been almost equally long since Pepsi had a stock split and the Pepsi price of $66.51 against a price of $74.12 for Coca-Cola.

On a longer-term basis, Coca-Cola intends to double its revenues this decade. It is a plan that “provides a clear roadmap for creating value for our consumers, customers, bottling partners and shareowners.”

JON C. OGG

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.