Current annual Dividend: $0.56 x 4 = $2.24.
Given dividend annual growth rate at 8%, in five years, annual dividend will be $3.05, and the total dividend earned in five years will be $13.14.
My average purchase price: $61.33.
Given a selling price at $76.50, the capital gain per share will be $15.17 (=$76.50-$61.33).
The capital gain is higher than the total of dividend in five years. Since I believe there will be better entry points in five years for both capital gain and dividend earnings, I'll set target selling price at $76.50 and sell some of my holdings.
KO announced its 4th quarter performance today. Mainly because of missing analysts' estimate, the price went down. This article explains well. Thus, I'll treat this current dip as an opportunity for buying. Will act at entry point $35.
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