1. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 70
Topping our selection of the best consumer staples stocks to buy now is The Coca-Cola Company (NYSE:KO). The Coca-Cola Company (NYSE:KO) is a global beverage giant, and also a dividend king. The stock’s trailing-twelve-month returns are up an astounding 20.70% as of April 22, and the stock boasts a forward dividend yield of 2.66%, 59 consecutive years of dividend increases, and a 5-year dividend CAGR of 3.66%. High momentum and strong earnings and dividend history are what make The Coca-Cola Company (NYSE:KO) the best consumer staple stock to buy now.
This February, The Coca-Cola Company (NYSE:KO) announced that its quarterly revenues for the fiscal fourth quarter of 2021 were valued at $9.47 billion, up 10.08% year over year, and outperformed the market by more than $570 million. The company reported earnings per share of $0.45, beating expert estimates by $0.04.
On March 30, JPMorgan analyst Andrea Teixeira raised her price target on The Coca-Cola Company (NYSE:KO) to $68 from $65 and maintained an Overweight rating on the shares. The analyst noted that despite the Ukraine conflict’s impact on commodities costs, transportation, and currency, consumer demand for brands such as The Coca-Cola Company (NYSE:KO) is expected to remain strong.
The Coca-Cola Company (NYSE:KO) is a top dividend stock pick among investor circles. According to Insider Monkey’s database, 70 hedge funds were long The Coca-Cola Company (NYSE:KO) at the end of Q4 2021. The total stakes of these funds exceeded $28.61 billion, up from $25.13 billion in the third quarter of 2021 with 61 positions. The hedge fund sentiment for the stock is positive.
As of the end of last December, Warren Buffett’s Berkshire Hathaway is the dominating shareholder in The Coca-Cola Company (NYSE:KO). The fund’s stake in the company was valued at $23.68 billion, which covers 7.15% of Berkshire Hathaway’s Q4 2021 investment portfolio.
ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its “Dividend Strategy” fourth-quarter 2021 investor letter. Here is what the firm said:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
You can also take a look at Top 10 Consumer Discretionary Stocks to Buy in 2021 and 10 Dividend Paying Consumer Defensive Stocks.
