5 Best Blue Chip Dividend Stocks to Buy

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

Dividend Yield as of November 21: 2.85%

The Coca-Cola Company (NYSE:KO) is a multinational beverage company, headquartered in Georgia, US. As the company showed growth in its organic sales and revenue, UBS raised its price target on the stock to $68 in October with a Buy rating on the shares.

The Coca-Cola Company (NYSE:KO) has a strong balance sheet to carry out its shareholder obligation. In the first nine months of the year, the company’s operating cash flow came in at $8.1 billion and its free cash flow stood at $7.3 billion. In Q3 2022, it reported revenue of $1.11 billion, which showed an 11% growth from the same period last year.

The Coca-Cola Company (NYSE:KO) currently pays a quarterly dividend of $0.44 per share. The company holds a 60-year track record of dividend growth, coming through as one of the best dividend stocks on our list. As of November 21, the stock has a dividend yield of 2.85%.

At the end of Q3 2022, Berkshire Hathaway was the largest stakeholder of The Coca-Cola Company (NYSE:KO) with 400 million shares. Overall, 59 hedge funds in Insider Monkey’s database owned stakes in the company in Q3, with a total value of over $25 billion.

Aristotle Capital Management, LLC mentioned The Coca-Cola Company (NYSE:KO) in its Q2 2022 investor letter. Here is what the firm has to say:

“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the refranchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social medias for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”

You can also take a look at Dividend Aristocrats List by Yield: Top 25 Stocks and 15 Best Consistent Dividend Stocks to Buy

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