10 Best Dividend-Paying Beverage Stocks to Buy

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

Number of Hedge Fund Holders: 69

The Coca‑Cola Company (NYSE:KO) is a total beverage company, offering more than 200 brands – from sodas to waters, from coffees to teas, from juices to kombuchas, and a growing list of flavored alcoholic beverages – in over 200 countries and territories around the world.

Despite a sluggish demand in the packaged foods industry, the net revenue of The Coca‑Cola Company (NYSE:KO) increased 6% in Q4 2024 to $11.5 billion, while organic revenues grew by 14%, driven by 9% growth in price/mix and a 5% increase in concentrate sales. The company witnessed market-share gains across its beverage portfolio in 2024, with Coca-Cola Zero Sugar being a standout and boasting a unit volume growth of 13% in Q4. KO’s innovative marketing strategies seem to be paying off and over the last three years, its trademark Coca-Cola brand’s retail sales have increased approximately $40 billion. According to Time Magazine, Coca-Cola, Minute Maid, and Fairlife were named the best brands in the world in their respective beverage categories in 2024. Shares of KO have surged by over 11% since the beginning of the year.

In The Coca‑Cola Company (NYSE:KO)’s recent earnings call, CEO James Quincey stated that if the price of aluminum increases as a result of the tariffs imposed by the Trump administration, the company may have to sell more drinks in plastic bottles to counterbalance higher costs. The beverage giant has already been named the world’s worst plastic polluter for six consecutive years, so shifting towards more plastic bottles could amplify concerns from environmental advocates and lead to further scrutiny.