10 Best DRIP Stocks To Own Now

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

Number of Hedge Fund Holders: 81

An American multinational beverage company, The Coca-Cola Company (NYSE:KO) ranks eighth on our list of the best DRIP stocks to invest in. In the fourth quarter of 2024, the company reported $11.5 billion in revenues, which showed a 6.5% growth from the same period last year. Organic revenue increased by 14%, driven by a 9% rise in price/mix and a 5% growth in concentrate sales. The company gained market share across its beverage portfolio in 2024, with Coca-Cola Zero Sugar standing out, achieving a 13% increase in unit volume during Q4. Coca-Cola’s innovative marketing strategies have yielded strong results, with retail sales of its flagship brand growing by approximately $40 billion over the past three years. According to Time Magazine, Coca-Cola, Minute Maid, and Fairlife were recognized as the top global brands in their respective beverage categories in 2024.

The Coca-Cola Company (NYSE:KO) benefits from its globally recognized brand, which strengthens its market dominance. By consistently delivering a familiar and trusted product, the company has built strong brand loyalty—an asset that many competitors aim to achieve. This loyalty allows the company to adjust pricing strategically without significantly impacting demand. Although unit sales declined by 1% in the latest quarter, the company effectively compensated for this drop through pricing strategies, demonstrating the resilience of its customer base. This adaptability supports Coca-Cola’s long-term stability and continued success. In the past 12 months, the stock has surged by over 16.5%.

The Coca-Cola Company (NYSE:KO) currently pays a quarterly dividend of $0.485 per share and has a dividend yield of 2.86%, as of February 23. The company showcased solid cash flow in the most recent quarter, generating $2.9 billion in operating cash flow and $1.6 billion in free cash flow. In addition, it maintained a strong adjusted operating margin of 30.7%, highlighting its profitability. The company remains a favorite among income investors, thanks to its impressive track record of over 62 consecutive years of dividend growth, which makes it one of the best DRIP stocks to invest in.