Some well-established businesses with strong brand recognition, wide reach, and a proven track record can still provide exciting growth opportunities for investors. Two such companies that I am keeping an eye on are Coca-Cola HBC and Kainos Group.
Coca-Cola HBC is a strategic partner and one of the largest bottling firms for the popular Coca-Cola brand. Despite concerns about economic turbulence and inflation impacting margins, the company’s strong brand power, track record, and passive income potential make it a compelling investment. In 2023, Coca-Cola HBC achieved its highest-ever revenue figure of £8.46bn, demonstrating positive momentum. The stock also offers a dividend yield of 2.9% and trades at a reasonable price-to-earnings ratio of 12.
On the tech side, Kainos Group is a UK-based business specializing in software implementation, with a focus on the popular Workday segment. The company’s expertise in implementing Workday solutions and its drive to utilize artificial intelligence (AI) for growth present exciting opportunities. However, there is a risk that advancements in AI could potentially replace the need for Kainos’ services in the future, impacting earnings. Nonetheless, Kainos shares also offer a dividend yield of 2.5%, with potential for growth.
Both Coca-Cola HBC and Kainos Group present interesting growth prospects for investors looking to diversify their portfolios with established companies poised for further success.