I invested 10k into a stock like KO. What now?
Do I keep adding yearly or add only the dividends? If yearly how much? I bought it at the bottom in 2009 I think and now up 30-40% just using dividends and rising of stock. I am hoping for one of those stories like where 10k will get me $1 million in the long run. I'm just wondering if 10k was the only investment and just multiplied through splits, dividends, appreciation, or did they add yearly? KO may not do it but i have others who knows. Thank you
- Anonymous10 years agoFavorite Answer
What now? That is a very good question and probably deserves a better answer than I am able to give. KO is one of the premier companies in the world today. They raise their dividend every year and have been doing so for the last 49 years. I don't know about turning 10k into a million with KO, but it certainly might be possible by reinvesting the dividends and adding 10k to your positions each year for the next 20 years. Just might do it. There would be a great deal of specific risk though in doing so because all of your money or a very significant portion would be all tied up in just one stock.
KO is one of my most major holdings as also it is one of Warren's most major holdings. I think it is his largest stock holding. But remember the old adage, "Don't put all your eggs in one basket". In this case all your money into one asset.
- RubyLv 410 years ago
Reinvesting the dividends over the years will certainly add to the value of a stock like Coca Cola. However, the 10K you invested will probably not magically turn into a million in your lifetime. Just keep adding to your portfolio with other thoughtful stock purchases, always reinvesting. Be diversified, and only invest in what you understand. It will serve you well over the years.
I had a very dear friend who invested around $10,000 in the 50s into a little known company called McDonald's. When he died about 5 years ago, his stock was worth around $3 million.
- Ryan MLv 710 years ago
KO is NOT going to turn a measly $10k into a million. You needed to invest in KO WELL before they exploded into what they currently are....like before the Great Depression. In case you were unaware, KO is NOT a growth stock. You are not going to experience 1,000% growth with KO.....the company is just not able to have that kind of growth. Splits have NOTHING to do with your basis.
- Richard ELv 410 years ago
Either you bought stock in KO or you didn't. You should say so if you want a useful answer. What would "a stock like KO" be? Pepsi? Royal Crown? Snapple?
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- ?Lv 610 years ago
"What now" is up to you. If you think, however, that investing $10K in KO is going to make you a millionaire, think again. "Splits" do not mean profits for you, BTW.