How does a £6,493 monthly passive income in retirement sound to you? Pretty good, right? It doesn’t have to be a pipe dream, and here I’ll show you how.

High-yield heroes

When you’re investing for dividends, it’s natural to chase the highest-yielding shares out there. We all love the idea of getting the maximum bang for our buck, whether it’s when finding stocks to buy or doing the weekly shop. The greater the dividend yield, the more money an investor gets back for every pound invested.

I hold a large number of high-yield dividend stocks in my own portfolio. Legal & General (dividend yield: 8.7%), HSBC (5%), and Aviva (6.7%) are a few FTSE 100 shares with better-than-average yields I own today.

But just owning big-paying dividend shares can be an expensive strategy over the long term. This is because shares with enormous yields are often investor traps. The yield can often be high because the share price has slumped, signalling underlying problems with the business that can hit profits and dividends. In other cases, sky-high yields can be unsustainable over the long term, paving the way for income disappointment.

The real thing

For this reason, it’s important to consider companies that consistently grow their dividends as well. This strategy has other advantages, like providing an income that keeps up with or even exceeds inflation, and creating a wealth-building snowball effect as dividends steadily rise.

It’s why I’ve also added Coca-Cola HBC (LSE:CCH) shares to my portfolio. Today the soft drinks company’s dividend yield is 2.7%, below the broader FTSE 100’s 3.2%. But that doesn’t put me off — I’m more interested in the company’s record of 13 consecutive yearly dividend hikes.

What’s more, dividends have grown at an exponential rate, averaging 11.6% a year over the last decade.

So what makes Coca-Cola such an exceptional dividend grower? The answer lies in its market-leading brands, global reach, and strong pricing power, providing reliable cash generation. Every day, Coke is consumed an astonishing 1.9bn times by consumers worldwide.

Competition is fierce in its markets and poses obvious risks. However, with enormous market budgets and a great record of innovation, demand for its drinks still remains white-hot, even during economic downturns.

Making a £6k+ ISA income

Through a combination of dividend growth stocks like this and high-yield shares, I believe an annual ISA return of 9% is very achievable. At this rate, £20,000 invested steadily over the course of the tax year could create an ISA worth £1.1m after 20 years.

This would then generate a £6,493 monthly income if invested in 7%-yielding income shares.

The post Here’s how a £20k ISA could earn you a £6,493 income every month! appeared first on The Motley Fool UK.

One that’s worth highlighting in the current market environment is this classic: “I will tell you how to become rich. Be fearful when others are greedy. Be greedy when others are fearful.”

Here, he’s saying that the best time to buy stocks is when others are selling.

A winning strategy

Amid all the geopolitical uncertainty investing has felt challenging, as a lot of investors have been selling. Here in the UK, the blue-chip FTSE 100 index fell into ‘correction’ territory at one point last month (meaning a drop of 10% from its recent highs).

This is the kind of environment Buffett loves. Throughout his career, he’s often stepped up to buy during periods of market weakness and it has made him a lot of money.

Real-world trades

For example, he initially bought Coca-Cola stock in 1988 (via his investment company Berkshire Hathaway), just after the 1987 market crash. Like many other stocks, it sold off heavily during the crash, even though its business was still in solid shape and its market dominance was unquestionable.

This trade made him an absolute fortune. Today, Berkshire’s position in Coke is worth around $30bn.

More recently, Berkshire Hathaway bought back a lot of its own stock in the first quarter of 2020 (when markets tanked due to the pandemic). When others were panicking, he saw value on offer.

This trade worked out very well too. Over the last six years, Berkshire Hathaway Class A shares have risen about 170%.

Buffett’s focus

It’s worth pointing out that Buffett – who recently stepped down as CEO of Berkshire Hathaway – was very selective when choosing stocks to invest in. He didn’t buy any old stock just because it was down.

His strategy was based around investing in high-quality businesses. Ultimately, he was looking for companies with strong competitive advantages (or wide economic moats), high levels of profitability, solid balance sheets, and good track records.

A stock to look at today

The good news is that there are plenty of Buffett-type stocks that look appealing today, both in the UK and abroad. One UK-listed example is Coca-Cola HBC (LSE: CCH), which has recently fallen more than 10%.

This company – which is a bottling company for Coca-Cola – ticks a lot of Buffett boxes. Not only is it both very profitable and financially sound, but it also has a great track record in terms of shareholder returns (including an excellent dividend growth track record).

In terms of the valuation, it looks very reasonable to me after the recent pullback. Currently, the price-to-earnings (P/E) ratio’s about 16.

Zooming in on the dividend yield, it’s about 3%. So there’s a decent level of income on offer.

Of course, there are risks here. Geopolitical instability, changing consumer trends, and supply chain costs (eg transportation) are some to think about.

Taking a five-year view though, I see a lot of potential so I think it’s worth considering. Note that analysts at Jefferies have a 5,000p price target – that’s about 20% above the current share price.

The post With the FTSE 100 down 5%+ investors should remember this legendary quote from Warren Buffett appeared first on The Motley Fool UK.

Here’s how you could aim for almost £4k a month in extra retirement income, starting today.

Compound boost

Unfortunately, a lot of Brits don’t take advantage of the enormous tax benefits of the ISA. Over time these can be considerable, so the first step would be to consider opening one of these great products.

Unlike a general investment account (GIA), investors don’t pay a penny in capital gains tax when they sell shares. They also don’t owe money to HMRC on any dividends they receive. With these savings, ISA users have more money to invest, which enhances the snowball effect of compound returns.

What a lot of people don’t know is that Stocks and Shares ISAs are extremely versatile. They can be used to buy shares, exchange-traded funds (ETFs), and investment trusts from across the globe. This provides investors with substantial wealth-building opportunities and the chance to effectively spread investment risk.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Buying quality shares

So, what sort of investment could you begin with? ETFs that track stock indexes and sectors are a quick and easy way for new investors to get started. Buying these this alongside choosing individual stocks can lead to greater long-term gains.

I think I’ve spied a great share to consider following recent stock market volatility. Coca-Cola HBC (LSE:CCH) is a FTSE 100 stock that’s slumped 12% over the last month, pushing it firmly (in my opinion) into bargain basement territory.

Like other global stocks, the soft drinks giant has fallen sharply because of the war in the Middle East. In this case, the market worries about rising cost pressures as oil supply disruptions drive inflation. They also fear the economic and inflationary impacts of the war on consumer spending.

I think these concerns have been overblown. The unmatched brand power of the company’s drinks supports strong revenues regardless of economic conditions. In fact, the likes of Coke are so beloved that the business can pass on increased costs to the consumer while still growing volumes, even in tough times.

Let me explain why I think Coca-Cola HBC’s now a bargain. At £42.33 a share, its price-to-earnings (P/E) ratio is currently 16.3 times. That’s well below the 10-year average of 20-21.

Earning a £3,854 monthly ISA income

With a diversified portfolio of quality stocks like this, I think an average annual ISA return of 9% is possible. That’s matches the stock market’s historical performance over time, and it would turn a £20k investment today into £294,612 over 30 years.

That’s not bad, but investing an extra £200 a month would add some real magic. This would lead to a Stocks and Shares ISA of £660,760 after 30 years, which would then deliver a £3,854 monthly passive income if invested in 7%-yielding dividend shares.

The post £20k in a Stocks & Shares ISA? Here’s how to target a £3,854 monthly passive income appeared first on The Motley Fool UK.

I’ve picked out three great UK shares I think could surge from current levels: Coca-Cola HBC (LSE:CCH), GSK (LSE:GSK), and Greggs (LSE:GRG). Want to know why they could deliver blockbuster returns over the long haul?

Sparkling outlook

Coca-Cola HBC bottles and sells some of the world’s most popular drinks across Europe and parts of Africa. It’s slumped 8% in value over the last month, greater than the broader FTSE 100’s 5% decline.

Like other consumer goods producers, it’s dropped on fears of surging inflation. But is the stock market overreacting here? I think so.

Rising prices will push Coca-Cola’s cost base higher and dent consumer spending, sure. Yet the company has a stellar record of passing these extra costs onto shoppers even when they’re feeling the pinch. The likes of Coke, Sprite, and Schweppes remain in high demand at all points of the economic cycle, such is their incredible brand power.

Coca-Cola HBC’s price-to-earnings (P/E) ratio has dropped to 17.5 times, well below the 10-year average of 21-22. Despite the significant threats posed by competitors, I think this is a top dip buying opportunity to consider.

Another FTSE faller

Pharmaceutical stocks like GSK are among the most resilient to outside conditions. So why has this FTSE 100 company slumped 12% over the past month?

Maybe this can be explained away by the broader risk aversion sweeping stock markets. GSK’s share price surge in 2025 has left it especially vulnerable to such conditions.

I’m confident the drugs giant will surge back once investor confidence improves. US vaccine demand remains problematic, but growth is strong in other areas like HIV and oncology. The company is accelerating its product pipeline too to drive future profits.

Today GSK shares trade on a forward P/E ratio of 10.6 times. That’s fractionally below the 10-year average.

Set to rise?

Greggs’ sales have been staging a modest recovery of late. But inflationary pressures and tough conditions for UK consumers pose a threat to that uptick. Latest data showed UK wages rise at the slowest pace for five years.

The market is therefore re-rating Greggs shares again, and its price has dropped 6% over the past week. As an investor here myself, I’m thinking of topping up my holdings. The P/E ratio has slipped to 12.5 times from the long-term average of 22-23.

I’m confident the baker will come roaring back even if sales backpedal again in the near term. There is still considerable scope to expand in the delivery and evening segments, two of the fastest growing channels. The FTSE 250 firm is also focusing its ambitious store expansion drive on more lucrative franchise and transport hub stores to drive future earnings.

The post Forget short-term pain. Consider these 3 FTSE shares for long-term gain! appeared first on The Motley Fool UK.

It is underpinned by strong fundamentals, as one of the largest Coca‑Cola bottlers globally. This enables it to blend solid defensive consumer‑staples resilience with exposure to faster‑growing emerging markets.

So, where should the stock be priced?

Growth ahead?

Ultimately, any firm’s share price is driven by growth in earnings (‘profits’). A risk to these for Coca‑Cola HBC remains the ageing global population, which consumes fewer sugary drinks than younger people. And as a bottling business for Coca-Cola, it remains heavily reliant on this partnership, limiting its ability to diversify its revenue streams.

However, despite these risks, analysts’ consensus forecasts are that the firm’s earnings will grow by an average 9.6% a year to end-2028.

These forecasts look well supported by the company’s 2025 results, released on 10 February. Organic earnings before interest and taxes rose 11.5% year on year to €1.356bn (£1.17bn), underlining the strength of Coca‑Cola HBC’s operating model and the benefits of its premiumisation strategy.

Furthermore, reported revenue increased 7.9% to €11.605bn, reflecting targeted revenue‑growth‑management initiatives continuing to lift pricing power. Organic volume also grew 2.8% to 2.997bn unit cases, driven by strong performances in Sparkling and a remarkable 28.3% surge in Energy. This illustrated the success of the group’s category‑expansion strategy.

Positive for the future as well is that comparable EBIT margins expanded by 40 basis points organically to 11.7%, highlighting improved top‑line leverage and the early benefits of digital and AI‑enabled execution tools.

Together, these metrics show a business delivering consistent operational momentum. A premium mix, disciplined pricing and strong emerging‑market demand all provide a clear runway for further earnings growth ahead.

What’s the fair value of the shares?

Price and value are very different things in assets. Price is simply whatever the market will pay at any moment, but value reflects the fundamentals of the underlying business.

The difference between the two is a key to optimising long-term investors’ profits over time. This is because asset prices (including shares) tend to converge to their ‘fair value’ over the long run.

Discounted cash flow analysis is the method to ascertain a stock’s fair value. This projects any firm’s future cash flows and then discounts them back to today.

Some analysts’ DCF modelling is more conservative than mine, others less so — depending on the variables used. However, based on my DCF assumptions — including a 6.6% discount rate — Coca‑Cola HBC shares are 27% undervalued at their current £45.39 price. And it implies a fair value for the shares of around £62.18.

So that gap suggests a potentially terrific buying opportunity to consider today if those DCF assumptions prove accurate.

My investment view

Coca‑Cola HBC strikes me as the kind of high‑quality FTSE 100 business that too many investors overlook until the rerating is already underway.

It blends strong cash generation and exposure to faster‑growing emerging markets, producing a rare balance of resilience and expansion potential.

The only reason it is not for me is that I focus on high-dividend-yielding shares, aged over 50 as I am. But for younger long‑term investors, I think it is exactly the sort of steady compounder that merits attention.

The post Around £45, is it time for me to buy this overlooked FTSE growth gem on the dip after strong results? appeared first on The Motley Fool UK.

Nevertheless, fears about a market meltdown have been rising recently due to two obvious potential catalysts.

The Iran war

The first is the war in Iran, which understandably continues to dominate headlines. The supply disruptions could have devastating consequences for the global economy if the conflict drags on for months.

In this scenario, higher energy prices would heap more pressure on inflation-weary consumers and businesses. Making things worse, central banks would then be forced to start hiking interest rates again to try and tame inflation.

A lot of attention is focused on oil and liquefied natural gas, but a prolonged closure of the Strait of Hormuz would also see fertiliser supplies disrupted. So this could severely impact agriculture, leading to a spike in food prices.

With surging inflation, higher rates, poorer consumers, and weakening economies, the stock market could crack.

The strange AI boom

Another thing lurking in the background is the AI revolution. At first, the technology wowed investors, with its promise to dramatically increase productivity across multiple industries.

But as time goes on, more investors are worrying about the implications for jobs. In particular, white-collar workers who could be replaced by autonomous AI agents, as well as taxi drivers eventually from the rise of robotaxis (which are essentially AI computers on wheels).

Needless to say, the implications for consumer spending from this wouldn’t be great.

Two things to note

Now, as alarming as this sounds, I think some perspective can help investors. For example, research from LPL Financial shows that the average pullback of the S&P 500 after 26 separate geopolitical events over 80 years was 4.5% (ie, mostly not crashes).

These included some very scary events, like the Cuban Missile Crisis in 1962. LPL Financial writes: “History tells us that stocks will display their resilience on the other side after the fog of war clears.”

As for AI, research from Snowflake says that 77% of organisations report AI-driven job creation compared to 46% reporting job losses. Among those experiencing both, 69% say the net impact of AI on jobs has so far been positive.

So the reality is more nuanced than headlines suggest. Meanwhile, Gartner estimates that over 40% of agentic AI projects will be scrapped by 2027 due to poor return on investment.

Resilient UK stock

One FTSE 100 company that has proven resilient in the face of tariffs, inflation, and war is Coca-Cola HBC (LSE:CCH). The stock’s up 33% in 12 months.

The Swiss company is a major Coca-Cola bottler, operating across parts of Europe and Africa. Last year, revenue grew 7.9% to €11.6bn while organic operating profit jumped 11.5% to €1.35bn.

This was helped by surging energy drinks sales from Monster, Predator, and Fury in Africa. Its Costa coffee-branded drinks are also popular.

Clearly, inflation would see manufacturing costs rise, as well as pressure consumer spending. And the stock isn’t cheap today at 20 times earnings.

But if markets wobble in the coming weeks, I feel this is a high-quality stock worth having on a watchlist. After acquiring Coca-Cola Beverages Africa, the firm is set up for many more years of growth in emerging markets.

The post Worried about a stock market crash? Here are 2 things you should know appeared first on The Motley Fool UK.

Could that be a big problem for the bottling and distribution company? Or is there something else that investors need to pay attention to?

Costa

Coca-Cola HBC is the firm that manufactures and distributes Coca-Cola products in various countries. And it recently expanded its scope by buying 75% of its African bottling subsidiary.

One reason the firm has done well recently is the success of its Costa division, where sales have grown 27% in the last 12 months. That’s great, but the parent company hasn’t been having the same success.

The US company has been reporting losses in its Costa unit and has been looking to sell this off as a result. And while it didn’t find a private equity buyer in its most recent attempt, it may well try again.

Investors might therefore wonder whether Coca-Cola HBC might be about to lose the rights to one of its top-performing assets. But the situation is much more complicated than this. 

Assets and ownership

There are two parts to Costa’s business. One is the physical cafes and the other operates vending machines and manufactures ready-to-drink products that are sold in supermarkets.

Coca-Cola is looking to find a buyer for the physical stores. But the bit that’s been performing well for Coca-Cola HBC is the ready-to-drink division, which the parent company is looking to retain. 

Even if a sale does go through in the future, that means the FTSE 100 company should still be able to retain its fast-growing business. And that’s a structure that could benefit both parties. 

A private equity firm is unlikely to be interested in building the distribution network that Coca-Cola HBC has. So the company might well be able to retain its key asset even without the cafes. 

Capital intensity

Costa is a bit of an anomaly in the Coca-Cola system. The subsidiary owns the part of the business that’s less capital-intensive, which is the opposite of how it is with most of the other products.

Most of the time, the parent company owns the intellectual property and manufactures syrups. The bottling franchise does all the manufacturing, distribution – the stuff that takes heavy machinery. 

That makes Coca-Cola HBC more vulnerable to inflation. Higher capital requirements mean there’s a risk that rising costs can make maintaining and replacing its assets more expensive over time. 

With Costa, though, it’s the other way around. The capital-intensive bit is the stores – which the parent company owns – while the subsidiary owns a relatively efficient part of the business.

Is the stock a buy?

Coca-Cola HBC has some genuinely unique assets. And even if the parent company does eventually divest its interest in Costa, the bottling subsidiary should still keep its fast-growing asset. 

The stock isn’t cheap at the moment and I think investors can find better value elsewhere. But it’s a business that shouldn’t be underestimated and is well worth keeping an eye on going forward.

The post Up 46% in a year! But is there trouble coming for this FTSE 100 stock? appeared first on The Motley Fool UK.

But how can an investor turn this from a pipe dream into reality? Here’s a step-by-step plan of how you could turn a £300 monthly investment in shares into an extra income of more than £38,000 a year.

Building the pot

Our strategy involves a little legwork at the beginning. You need to set up a tax-efficient investing account, preferably a Stocks and Shares ISA and/or a Self-Invested Personal Pension (SIPP). Then comes the task of finding the best shares, trusts, and funds to fill it with, based on your investing goals and tolerance and risk.

However, once it’s up and running, you should be able to sit back and watch your wealth steadily grow over time. History isn’t always a reliable guide to future returns. But the long-term performance of the stock market is unmatched, which gives me enormous confidence as an investor.

Since the mid-20th century, share investing has delivered an average annual return of 8% to 10%.

Passive income plans

The cornerstone of our strategy is to use our ISA or SIPP to buy shares that pay dividends. That passive income could be used for retirement spending later on. But in the meantime, it is reinvested to amplify compound gains and grow the size of the pension pot.

We should look for stocks that could pay healthy dividends not just now but in the future. Companies with market-leading positions and diverse revenue streams can deliver reliable and growing dividends over time. Firms with strong balance sheets and cash generation should also be a priority.

A top dividend stock

Coca-Cola HBC (LSE:CCH) is a great FTSE 100 dividend share that enjoys all of these qualities. In fact, it’s a dividend powerhouse I hold in my own personal SIPP.

Dividends here have risen every year since 2012. That’s when the Coca-Cola bottler first listed on the London stock market. And over the past five years they’ve grown at a breakneck compound annual rate of 13.4%.

The question is, can the company keep delivering impressive dividends? I’m confident it can, even though it faces competitive pressures and the problem of rising costs. The exceptional brand power of its drinks mean they remain in high demand across the economic cycle. They also allow the company to hike prices to grow earnings and cash flows, the perfect conditions for sustained dividend growth.

A £38k+ second income

With a diversified portfolio of shares like Coca-Cola HBC, I think an average annual return of 9% is quite possible. Based on this, a £300 monthly investment would, after 30 years, create an ISA or SIPP worth £549,223.

If this was invested in 7%-yielding dividend shares, it could generate an annual second income of £38,446. Combined with the State Pension, this could provide a very comfortable retirement.

The post Here’s how you could invest £300 a month for a £38k+ second income appeared first on The Motley Fool UK.

But despite these worrying predictions, I’m continuing to buy UK shares. Here are a couple that I recently bought.

Cheers!

Not to be confused with the US company, Coca-Cola HBC (LSE:CCH) holds the exclusive rights to distribute the American group’s drinks in 28 countries in Europe and Africa.

Analysts are expecting strong earnings growth over the next five years with emerging markets being the biggest contributor. If these forecasts prove accurate, based on a current (19 January) share price of £39.16 (€45.16), it implies a forward (2029) price-to-earnings ratio of 11.8. This would be incredibly cheap for the sector, the FTSE 100, and — based on history — for the stock itself.

A 69% increase in its dividend is also predicted, lifting the stock’s yield to 3.9%.

These forecasts were compiled before the group announced its intention to acquire 75% of Coca-Cola Beverages Africa for $2.6bn. This will give the group access to another 14 countries accounting for approximately 40% of sales volumes on the continent.

Although it remains a highly competitive industry and there are fears that weight-loss drugs could affect demand, I like the group’s policy of having a drink for every occasion round the clock. And it’s more than about Coca-Cola. Set alongside these impressive forecasts, that’s why I decided to add the stock to my portfolio and why others could consider doing the same.

A big reboot

After suffering a torrid time as a result of falling sales, distribution issues, and US tariffs, the Dr Martens (LSE:DOCS) share price has been on the back foot since its IPO.

Admittedly, the stock’s not cheap based on its current financial performance. But if it can achieve the March 2028 (FY28) forecast earnings per share of 6.1p, it’s a different story. The investment case therefore rests on whether this is achievable. I think it is.

Challenges remain. There are many cheaper alternatives out there. And it’s hard to remain relevant in the fashion industry.

However, the group’s turnaround strategy of selling more directly to customers and entering into partnerships in new markets, show signs of working. Its half-year FY26 results revealed a 33% increase in shoe volumes compared to a year earlier.

I reckon the brand retains its iconic status. And despite its woes, it’s been reducing its debt and stock levels. More will be known when the group releases its next trading update on 27 January. But I think it’s one for patient long-term investors to consider.

Lots to choose from

In my opinion, these are just two interesting UK shares. And as the table below shows, analysts appear optimistic about the prospects for the majority of stocks on the FTSE 100 and FTSE 350, with Buy recommendations of 61% and 63%, respectively.

I believe that the stock market will crash or, at the very least, experience a correction soon.

This isn’t me being gloomy. It’s an opinion based on the fact that there have been plenty in history. But the key is not to panic and keep seeking out those bargains. Taking a long-term view is essential when looking to build wealth.

The post I don’t care if the stock market crashes. I’m still buying cheap UK shares appeared first on The Motley Fool UK.

All these shares except McDonald’s have lost more than a third of their value since January 2025!

Now, I’m not saying GLP-1s are the only reason why these shares have struggled. Weak consumer spending isn’t helping any of them, while Diageo is facing changing alcohol consumption patterns among younger generations.

Nevertheless, weight-loss drugs are clearly not helping sentiment for such stocks. So I don’t regret selling them.

But I still hold one FTSE 100 share that I fear might also be hit in future. What should I do?

A strong performer

The Footsie stock I’m referring to is Coca-Cola HBC (LSE:CCH). This is a major bottler for Coca-Cola, with operations across 29 countries in Europe and parts of Africa.

As well as sparkling drinks brands like Coca-Cola, Fanta, Sprite, and Schweppes, the company distributes energy drinks for Monster Beverage. It also sells Costa Coffee and Caffè Vergnano products, as well as various waters, juices, and snacks in some markets. 

Sales and earnings growth have been strong for years, helping drive a 175% gain in the share price over the past decade. The stock is up 40% in just 12 months.

The concern

But as everyone likely knows by now, people taking GLP-1 medications experience suppressed cravings for certain food and drinks.

According to a study by Cornell University and consumer insights group Numerator, soft drinks consumption is affected the most among those taking the drugs. Then coffee, energy drinks and juices, followed by alcohol and water.

Impact of GLP-1 on beverage consumption after six months

Today, only a small minority of people in developed economies are taking these medications due to cost. However, patents on semaglutide — the key ingredient in Novo Nordisk‘s Wegovy — are set to expire in several countries this year.

This means other drugmakers will then be free to produce and sell far cheaper versions, including in some of Coca-Cola HBC’s high-growth emerging markets (like Nigeria).

Soft drinks, coffee and energy drinks form the backbone of the firm’s portfolio. So there’s arguably risk here if there’s a sudden, cheap influx of weight-loss drugs across both developed and developing markets.

My view

Despite this theoretical threat, I’m not worried enough yet to throw in the towel. Because in parts of Africa and Eastern Europe, per capita consumption of branded beverages remains very low. So I still see a solid long-term growth opportunity here.

In reality, GLP-1 adoption is unlikely to reach high levels in emerging economies any time soon. In the meantime, the company is pivoting toward more low- and no-sugar drink options to accommodate rising GLP-1 users.

Moreover, research indicates that many users discontinue these drugs within a year, then often return to previous consumption habits.  

Finally, the valuation doesn’t look overstretched here. The forward price-to-earnings ratio is 15.8 versus more than 20 for Greggs and Diageo a while back. So the starting valuation is lower, which could provide some level of support even if GLP-1 fears emerge.

Throw in a 3% forecast dividend yield, and reckon Coca-Cola HBC is still worth considering for a diversified Stocks and Shares ISA.

The post I sold Diageo and Greggs. Should I dump this FTSE 100 stock too? appeared first on The Motley Fool UK.