15 Best S&P 500 Dividend Stocks to Buy Now

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

Number of Hedge Fund Holders: 81

The Coca-Cola Company (NYSE:KO) is an American multinational beverage company. In the past 12 months, the stock has surged by over 17%. The company has demonstrated its operational resilience through solid organic revenue growth, margin expansion, and consistent EPS gains, even in a challenging market. Despite industry headwinds, including concerns over GLP-1 weight loss drugs, tariffs, currency fluctuations, and inflation, the company has successfully navigated these challenges, reinforcing its standing as a leading player in the sector.

In the fourth quarter of 2024, The Coca-Cola Company (NYSE:KO) reported $11.5 billion in revenue, marking a 6.5% year-over-year increase. Organic revenue grew by 14%, driven by a 9% rise in price/mix and a 5% uptick in concentrate sales. Throughout the year, Coca-Cola expanded its market share across its beverage portfolio, with Coca-Cola Zero Sugar performing particularly well, posting a 13% increase in unit volume during the quarter. The company’s innovative marketing efforts have played a key role in its success, contributing to roughly $40 billion in retail sales growth for its flagship brand over the past three years.

In the latest quarter, The Coca-Cola Company (NYSE:KO) maintained strong cash flow, generating $2.9 billion from operations and $1.6 billion in free cash flow. It also reported a solid adjusted operating margin of 30.7%, highlighting its profitability. With an impressive track record of raising dividends for over 62 consecutive years, KO is one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.485 per share and has a dividend yield of 2.86%, as of February 27.