5 Best Blue Chip Dividend Stocks To Buy

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

Number of Hedge Fund Holders: 61
Dividend Yield as of May 23: 3.01%

The Coca-Cola Company (NYSE:KO) is next on our list of the best dividend stocks. The multinational beverage company was lauded by Barclays in April, following its Q1 profits. The firm raised its price target on the stock to $73 and kept an Overweight rating on the shares.

The Coca-Cola Company (NYSE:KO) offers a quarterly dividend of $0.46 per share and has a dividend yield of 3.01%, as of May 23. The company has a 61-year run of raising its dividends.

At the end of March 2023, 61 hedge funds tracked by Insider Monkey held stakes in The Coca-Cola Company (NYSE:KO), up from 58 in the previous quarter. Berkshire Hathaway was the company’s leading stakeholder with shares worth over $24.8 billion.

Rowan Street Capital mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”