Invest $10,000 in Coca-Cola by 2025—Will It Make You a Millionaire Within a Decade?

Coca-Cola's stock just hit another all-time high—but can this legacy giant actually deliver millionaire returns from a $10k bet?

The Dividend Dynasty Question

That 3% yield looks tempting until you run the numbers. Turning $10,000 into $1,000,000 requires a 26% annualized return for ten straight years. Coke’s historical average? Just 9%—including dividends.

Growth Engine Stalling

Global soda consumption keeps dropping year after year. Health trends hammer sugar-loaded beverages while emerging markets push local brands. Coke’s ‘diversification’ into water and energy drinks barely moves the needle on a $250 billion valuation.

The Inflation Trap

Even if Coke hits its optimistic 7% growth target, inflation would chew through nearly half those gains. Real wealth building? You’d need the stock to outperform its own century-long average by 300%—during a consumer shift away from its core product.

Wall Street’s Favorite Illusion

Analysts love pitching ‘safe’ stocks like Coke to retail investors while their firms chase actual alpha in private markets. But hey—at least you’ll get those quarterly dividends to reinvest while waiting for a miracle.

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Coca-Cola's bull thesis

Many reasons support the argument that Coca-Cola is a high-quality business. The brand is one factor, and it supports the company's economic moat. Coca-Cola has been around for over 100 years. Its customers have grown an affinity for its products, thanks to consistent offerings and effective marketing.

The durable brand is also supported by the industry Coca-Cola operates in. There isn't much disruption or innovation happening in this market, and things don't change much over time. This gives me confidence that the brand will be relevant decades from now. In this way, Coca-Cola is a company Buffett likely views as a "forever" holding.

That brand positioning has resulted in impressive profits. Coca-Cola outsources the heavy lifting of bottling and distribution to third parties, helping it run a leaner operation. In the latest quarter (Q2 2025, ended June 27), the business reported net income of $3.8 billion, translating to a fantastic net profit margin of 30%.

Being able to consistently raise prices helps management offset cost inflation. Favorable pricing added a 5% bump to revenue during Q2. This attractive trait should help Coca-Cola maintain its profit margins as we look ahead.

The company's bottom-line performance directly benefits shareholders. Coca-Cola has raised its dividend for a jaw-dropping 63 straight years. With a healthy dividend yield of 2.91%, the stock can be a top choice for investors seeking a steady income from their portfolio holdings.

Coca-Cola won't generate huge returns

In the past 10 years, thehas produced a total return of 286% (as of Aug. 22). Coca-Cola has been a serious laggard. Its shares have generated a total return of just 145%. I think investors can expect much of the same going forward.

That is to say that Coca-Cola won't put up monster capital appreciation. Revenue is projected to increase at a compound annual rate of 4.7% between 2024 and 2027. Earnings might grow slightly faster. But because this is a very mature business, there aren't that many levers the leadership team can pull to boost growth.

To grow $10,000 in starting capital to $1 million WOULD require a 100-fold gain. That kind of return would be life-changing, especially in a 10-year timeframe. However, it's rare and maybe even impossible to find a single company that can rise that rapidly. And investors shouldn't bet the house on one stock having such a big influence on their financial health. Coca-Cola hasn't even come close to a 100-fold gain in the past three decades.

The best thing investors can do is focus on building a well-diversified portfolio of competitively advantaged companies growing at solid rates. This strategy will likely work out well over the long run.

While this is a great business and top choice for income investors, it likely won't beat the market over the long term. And it definitely won't turn $10,000 into $1 million in 10 years.