15 Best Dividend Stocks To Buy and Hold

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

Number of Hedge Fund Holders: 69

The Coca-Cola Company (NYSE:KO) is an American multinational beverage company. As a well-established leader in its sector, the company generates substantial profits, with operating margins consistently exceeding 20%, indicating efficient and profitable operations. Shareholders face minimal financial risk, as the company continues to deliver strong profits even during economic downturns. In the third quarter of 2024, it reported nearly $12 billion in revenue, beating analysts’ expectations by $290 million. The company also demonstrated solid cash generation, with an operating cash flow of $2.9 billion and a free cash flow of $1.6 billion. In addition, it achieved a remarkable adjusted operating margin of 30.7%, showcasing its strong profitability.

The Coca-Cola Company (NYSE:KO)’s most significant competitive advantage is its iconic brand, which strengthens its economic moat. It has consistently provided a product that is recognized and trusted by consumers around the globe, cultivating a level of brand loyalty that many companies strive for. This loyalty gives the company the flexibility to adjust its pricing. While unit sales fell by 1% in the most recent quarter, the negative impact was offset by effective pricing strategies, highlighting the strength of its customer base. This resilience contributes to the company’s long-term stability and success. In the past 12 months, the stock has delivered an over 4% return to shareholders.

The Coca-Cola Company (NYSE:KO) is one of the best dividend stocks on our list, having raised its payouts for 62 consecutive years. The company currently pays a quarterly dividend of $0.485 per share and has a dividend yield of 3.10%, as of February 4.

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.