10 Best Dow Jones Dividend Stocks According to Wall Street Analysts

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

Upside Potential as of February 6: 13.11%

An American multinational beverage company, The Coca-Cola Company (NYSE:KO) ranks seventh on our list of the best dividend stocks according to analysts. The company’s greatest competitive edge lies in its globally recognized brand, which reinforces its market dominance. By consistently delivering a familiar and trusted product, the company has built strong brand loyalty that many competitors aim to achieve. This loyalty allows for strategic pricing adjustments without significantly impacting demand. Although unit sales declined by 1% in the latest quarter, the company effectively countered this with well-executed pricing strategies, demonstrating the strength of its customer base. This adaptability supports Coca-Cola’s long-term stability and continued success.

As a dominant player in its industry, The Coca-Cola Company (NYSE:KO) maintains strong profitability, with operating margins consistently surpassing 20%, reflecting its efficiency and financial strength. Investors face minimal financial risk, as the company continues to generate solid earnings even in challenging economic conditions. In the most recent quarter, revenue reached nearly $12 billion, surpassing analysts’ forecasts by $290 million. The company also demonstrated robust cash flow, reporting $2.9 billion in operating cash flow and $1.6 billion in free cash flow. In addition, it posted an impressive adjusted operating margin of 30.7%, highlighting its strong profitability.

The Coca-Cola Company (NYSE:KO) has been grabbing the attention of income investors because of its long streak of dividend growth, spanning over 62 years. The company’s quarterly dividend comes in at $0.485 per share for a dividend yield of 3.07%, as of February 6.

According to Insider Monkey’s database of Q3 2024, 69 hedge funds held stakes in The Coca-Cola Company (NYSE:KO), up from 68 in the previous quarter. The total value of these stakes is roughly $35 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.