Coca-Cola's (KO) 3% Dividend Yield Is Just The Beginning - The Power of the Buyback Is Clear

I am, as you probably know, a fan of beverage companies. One of my largest holdings is Diageo (DGE) which I last topped-up in December and recently analysed over on Seeking Alpha.

However, I also hold soft-drinks maker Britvic (BVIC) which I bought in April 2015. Soft drinks remain, for me, a very attractive prospect. But you can't look at the sector without your eye turning to the mother of all soft-drinks makers: Coca-Cola (KO).

Coca-Cola continues to impress even in the face of fairly flat volume growth and modest but consistent underlying (that is, constant currency) revenue growth. A large part of this reason is its remarkably rewarding attitude towards shareholders' return. This is an issue I have only recently looked at in more depth. But I am glad I did.

BUY: Stock Spirits Group (STCK)--Spirited Growth in Central and Eastern Europe?

Shares: 330
Price: 197.17
Predicted annual dividend income: £10

Regular readers of the DD have no doubt noticed I have been looking to increase my consumer goods exposure of late.

This is especially the case with regards to the beverage sector.

Recently I added FTSE 250 soft-drinks Britvic and I have fairly regularly topped up my holding in FTSE 100 spirits giant, Diageo.

With my new funds I was looking to continue this shift. I had a few options I considered:

1. Top up my Britvic or Diageo holdings. Britvic, in particular, was looking attractive;
2. Open a new position in FTSE 100 beer giant, SABMiller;
3. Add a mid-cap like AG Barr, Nichols or Stock Spirits.

In the end I went for option 3 and recently-listed Buckinghamshire-based Stock Spirits (LON:STCK). 

But why?

BUY: Britvic (BVIC)--Taking a Sip of a Soft Drinks Giant

Price: 747.32p
Shares: 100
Predicted annual dividend income: £20.90

"Buy what you know", they say.

It is sound advice. After all, if you consume the products a company produces yourself you will have a better grasp of how other customers feel about the stuff they churn out the factory. If you like it, it is quite likely so do others.

That is why FTSE 250 soft drinks giant, Britvic (LON:BVIC), has been on my radar for some time.

Their drink brands abound everywhere.

Indeed, as I write I am sipping on a glass of R Whites Lemonade. And this weekend me and Miss DD were enjoying a little J2O together during whilst out and about.

Similarly, I am probably not the only one (especially in the UK) to admit I have a cupboard stocked full with Robinsons squash. We usually have at least two different flavours on the go at any one time (fruit and barley, usually).

As such, investing in them myself certainly seems logical. I know their drinks. I like their drinks. I buy their drinks. As do others around me.

So I finally overcame my reservations (more on this later) and pitched some of my cash in Britvic's direction. Let's see why here.

BUY: Diageo--A quick Christmas beverage top up

Price: 1771.18
Shares: 28 (this transaction) and 68 (entire holding)
Predicted annual dividend income: £15.29 (this transaction) and £37.14 (entire holding)

Christmas and New Year is coming and the drinks, no doubt, will be flowing for many of us. I intend to be part of that trend as usual (indeed, yesterday enjoyed a couple of pints of Guinness).

However, most of my alcohol-related funds over December will not be going through the pubs and supermarkets but the stock market. This is because I have topped up my holding in drinks giant Diageo.

BUY: Diageo--Raising my glass to dropping prices

Price: 1704.48
Shares: 41
Predicted annual dividend income: £21.20

The increasingly volatile markets has made for a rather nice buying time for many people. Already this month I have cashed in with a top-up purchase of HSBC. However, in reality my eyes had been on others companies in  other sectors. My financial segment is looking a little too large at the moment.

Several companies on my watchlist were within the broadly understood food and drink sector. In the end, the price drops pushed me towards my favoured stock in this area: Diageo.