Visa Inc (V), Colgate-Palmolive Company (CL) & The Coca-Cola Company (KO): Invest in Emerging Markets Without Leaving the U.S.

Most recognized brand

The Coca-Cola Company (NYSE:KO) is consistently at the top of the charts for one of the world’s most recognized brands. Its portfolio contains more than 3,500 non-alcoholic drinks that are served in over 200 different companies with the use of 250 Coca-Cola bottlers across the world. When you think of Coke, you might have a narrow view of the beverage company thinking it has only one brand — The Coca-Cola Company (NYSE:KO). In fact, the company owns and operates several popular brands such as Sprite, Minute Maid, Power Ade, DaSani, Fanta, Vitamin Water, Smart Water and Simply Orange along with its various Coke products.

Coca-Cola understands the importance of investing in international markets. In 2012, together with its bottling partners, Coca-Cola announced a $30 billion investment over the next five years to support the anticipated growth worldwide. It is investing in manufacturing facilities, infrastructure and cold-drink distribution equipment. This is an addition to a $1.3 billion investment in Chile, $3 billion in India, $300 million in Vietnam and $4 billion in China over the next few years. Another highlight for 2012 was delivering The Coca-Cola Company (NYSE:KO) products to Myanmar for the first time in 60 years.

For the full-year 2012, Coca-Cola had 11% growth in volume in Eurasia and Africa, 5% growth in Latin America, and 5% growth in the Pacific compared to a 2% growth in volume for North America. One interesting side note, Mexico ranked the highest for consumption per person in 2012 with 745 ounces per year. The U.S. had 401 ounces per person.

Another benefit The Coca-Cola Company (NYSE:KO) and Colgate-Palmolive Company (NYSE:CL) have to offer is a reliable dividend. The current yield for Coca-Cola is 2.7% and Colgate-Palmolive Company (NYSE:CL) is 2.2%. Both companies have paid a reliable, consistent dividend with regular increases.

Conclusion

Of the three companies, Visa Inc (NYSE:V) and Coca-Cola appear to have a better growth opportunity for the future. An investor looking for income or growth and income would probably prefer The Coca-Cola Company (NYSE:KO) whereas an investor looking for growth only would most likely go with Visa Inc (NYSE:V). All three of these stocks provide an investor a way to participate in emerging markets without having to invest in an emerging market company that is unproven.

John Kolb has no position in any stocks mentioned. The Motley Fool recommends The Coca-Cola Company (NYSE:KO) and Visa Inc (NYSE:V).

The article Invest in Emerging Markets Without Leaving the U.S. originally appeared on Fool.com.

John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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