10 Best Defensive Stocks According to Reddit

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

Number of Hedge Fund Holders: 68

The Coca-Cola Company (NYSE:KO) ranks seventh on our list of the best defensive stocks to buy now. The Coca-Cola Company (NYSE:KO) is a soft-drink manufacturer with headquarters in Atlanta, United States. The company has more than 500 brands that sell in more than 200 countries.

Its simple business model with an emphasis on localization has been its go-to strategy. In the second quarter of 2024, The Coca-Cola Company (NYSE:KO) relaunched Ayataka, a local tea brand in Japan. In addition to that, the company has shifted its focus to anticipated events such as the Olympics, music festivals, and the Euro 2024 Football Championship from regular retailing, in Europe.

In the second quarter of 2024, the company logged $12.3 billion in revenue, up by 3% year-over-year. The company is known for its consistent performance, growing its net sales from $33 billion in 2020 to $46 billion in 2023. Over the past 5 years, The Coca-Cola Company (NYSE:KO) has grown its revenue at a compound annual growth rate (CAGR) of 6% and its free cash flow at a CAGR of 7%.

The company’s financial performance has made it one of the largest dividend-paying companies. The company has grown its dividends by 3.65% over the past 5 years and has a payout ratio of 67.74%. The company has grown its dividends consistently for 61 years and paid out $8 billion in dividends in 2023. With almost 4.3 billion shares outstanding and a dividend at $1.94 per share, the company is expected to pay $8.4 billion in dividends in 2024. As of September 6, the stock has a forward dividend yield of 2.67%.

Overall, KO was held by 95 hedge funds at the close of Q2 2024 with total stakes amounting to $31.98 billion. As of June 30, Berkshire Hathaway was the largest shareholder with a position worth $25.46 billion.