10 Best Dividend Monarchs to Invest in Now

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

Number of Hedge Fund Holders: 81

Warren Buffett’s favorite, The Coca-Cola Company (NYSE:KO) is a multinational beverage company that offers a wide range of products. The company has traditionally held up well during economic downturns. A large share of its yearly revenue comes from selling concentrate syrup for its signature beverages—a business model that requires relatively little capital investment yet delivers strong profitability. Over the past five years, the company has consistently maintained profit margins above 20%, underscoring the strength and efficiency of its operations.

In the fourth quarter of 2024, The Coca-Cola Company (NYSE:KO) reported revenue of $11.5 billion, marking a 6.5% increase compared to the same period last year. Organic revenue rose by 14%, driven by a 9% boost in pricing and mix, along with a 5% uptick in concentrate sales. The company gained ground across its beverage categories, with Coca-Cola Zero Sugar showing notable growth—unit volume jumped 13% during the quarter. Its continued success was also supported by creative marketing efforts, which have added roughly $40 billion in retail sales to the flagship brand over the past three years.

The Coca-Cola Company (NYSE:KO) maintained solid cash generation, producing $2.9 billion in operating cash flow and $1.6 billion in free cash flow. The quarter also saw an adjusted operating margin of 30.7%, highlighting the company’s strong profitability. It announced a 5.2% hike in its quarterly dividend in February to $0.51 per share, which was the company’s 63rd consecutive year of dividend growth. The stock supports a dividend yield of 2.84%, as of April 15.