Dividend king, Coca-Cola (KO) is still one of the top stocks to consider.
Not only does it carry a yield of about 2.87%, its highly dependable, with strong demand and incredible earnings growth. It’s even one of Warren Buffett’s favorite stocks, which he refers to as a “forever” stock.
Better, KO just beat earnings with price hikes and strong demand. EPS came in at 68 cents, as compared to expectations for 64 cents. Sales were up to $10.96 billion, as compared to the estimate of $10.8 billion. The company reiterated its prior forecast for 2023. It is projecting comparable revenue growth of 3% to 5% and comparable earnings per share growth of 4% to 5% for 2023.
We also have to consider the company will still thrive even if the economy goes off a cliff. That’s because millions of people will still consume the beverage. Coca-Cola was also one of the clear winners in a disastrous 2022.
Also, remember, companies with strong cash flows and attractive yields tend to outperform even the worst of markets. According to The Wall Street Journal:
“Dividend stocks have become the new darling on Wall Street, and investors looking for income are pouring billions of dollars into them. These securities are considered a good buffer during times of market volatility. They also are seen as an inflation hedge, considering that S&P 500 dividend growth has outpaced inflation since 2000.”
Plus, dividend stocks allow investors to profit in two ways: one, through potential appreciation of the stock price, and two, through dividend distributions. Better, many dividend-paying companies also have a good amount of cash and hand and are typically strong companies with good prospects for long-term growth.
