10 Best Blue Chip Dividend Stocks To Buy

8. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 62

An American multinational beverage company, The Coca-Cola Company (NYSE:KO) ranks eighth on our list of the best dividend stocks. On May 2, the company declared a quarterly dividend of $0.485 per share, which was in line with its previous dividend. Overall, it holds a 62-year streak of consistent dividend growth. The stock supports an impressive dividend yield of 3.04%, as of July 7.

Regardless of how successful or unique a company may be, maintaining a balanced portfolio often requires strategic acquisitions. The Coca-Cola Company (NYSE:KO), recognizing shifting consumer preferences away from sugary sodas, has been heavily investing in diversifying its product offerings. Over the past decade, through several acquisitions, the company managed to boost its revenue, which had been somewhat declining significantly. The company grew its net sales from $33 billion in 2020 to $46 billion in 2023. In the first quarter of 2024, it reported revenue of $11.2 billion, which showed a 3% growth from the same period last year.

For income investors, cash flow is the bedrock of any company. The health of cash flow determines whether the company can continue to pay or uphold its dividends. In the most recent quarter, The Coca-Cola Company (NYSE:KO) reported strong cash position. Its operating cash flow came in at $528 million, showing an increase of $368 million from the prior year period. The company’s free cash flow also showed an increase of $274 million at $158 million. It expects a strong cash position for the year ahead, projecting to distribute around $84 billion in dividends for 2024, supported by an estimated $9.2 billion in free cash flow. However, after accounting for these cash outflows, there isn’t much remaining for the company to use towards reducing its $43.7 billion in total debt. In addition, its debt-to-equity ratio of 1.56 is considered somewhat elevated.

The Coca-Cola Company (NYSE:KO) was a part of 62 hedge fund portfolios at the end of Q1 2024, which remained the same as in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a collective value of over $28.5 billion. Among these hedge funds, Berkshire Hathaway owned 400 million KO shares, becoming the company’s leading stakeholder.