Coca-Cola (KO) isn't the most exciting stock in the world. The company doesn't have the "wow factor" of an Apple (AAPL) or a Tesla (TSLA). It's not a flashy tech company or an aspirational brand.
However, there's one thing that shares of Coca-Cola have done for years - they slowly grind higher. Coke shares have provided investors with gains in ten of the last eleven years.
There are three reasons why I really like Coca Cola right now:
1) Coca-Cola's Chart
On Thursday, Coke broke out of an ascending triangle pattern (black dotted lines). It also vaulted above its 200-day moving average (red) to close at its highest level since September 18th. The stock's MACD indicator is on the cusp of a buy signal (shaded yellow). Long story short, Coke's chart provides a confluence of technical reasons to own the stock.
2) Coca-Cola's Dividend
Coca Cola boasts a dividend yield of 3.31%. That might not seem like much, but in a time when the 10 year U.S. Treasury note yields 0.76%, that's a great bonus. On February 20th of this year, Coca-Cola announced its 58th consecutive dividend increase.
3) Coca-Cola's Status as a Consumer Staple
As a consumer staple, Coke is the type of stock that is likely to hold up relatively well during an economic downturn. With so much uncertainty about the U.S. and global economies right now, this might be a good name to tuck away in your portfolio.
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Ed Ponsi is the managing director of Barchetta Capital Management, and is the author of three books for publisher Wiley Finance. A dynamic public speaker, Ed has made appearances around the world, in such diverse locations as Singapore, Dubai, London, and New York. For more information about Ed and his work, click here.