13 Highest Yielding Dividend Stocks in the Dow

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

Dividend Yield as of January 16: 3.13%

An American multinational beverage company, The Coca-Cola Company (NYSE:KO) ranks sixth on our list of the highest yielding dividend stocks in the Dow. The company’s strongest competitive advantage lies in its iconic brand, which reinforces its economic moat. It has consistently delivered a product that consumers worldwide recognize and trust, fostering a level of brand loyalty that most companies aspire to achieve. This loyalty grants the company the ability to adjust its pricing. Although unit sales dipped by 1% in the latest quarter, the impact was mitigated by favorable pricing strategies, a common scenario that underscores the strength of its customer base. This resilience enhances the company’s long-term viability.

As a well-established leader in its industry, The Coca-Cola Company (NYSE:KO) generates significant profits, with operating margins often surpassing 20%, reflecting an efficient and profitable operation. Shareholders face minimal financial risk, as the company continues to deliver profits even during economic downturns. In the third quarter of 2024, it reported nearly $12 billion in revenue, surpassing analysts’ expectations by $290 million. The company showcased robust cash generation, with operating cash flow reaching $2.9 billion and free cash flow amounting to $1.6 billion. Additionally, it achieved an impressive adjusted operating margin of 30.7%, highlighting its strong profitability.

The Coca-Cola Company (NYSE:KO) is a strong dividend payer, having raised its payouts for 62 years in a row. The company offers a quarterly dividend of $0.485 per share and has a dividend yield of 3.13%, as of January 16.

As of the close of Q3 2024, 69 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), up from 68 in the previous quarter. These stakes have a consolidated value of roughly $35 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.