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: 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.