5 Beverage Stocks to Buy Now Despite Economic Headwinds

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

Number of Hedge Fund Holders: 64

The Coca-Cola Company (NYSE:KO) is an American multinational beverage corporation. 2022 was the 60th consecutive year that The Coca-Cola Company (NYSE:KO) increased its annual dividends. The company declared on July 21 a $0.44 per share quarterly dividend, in line with previous. The dividend is distributable on October 3, to shareholders of record on September 16.

The Coca-Cola Company (NYSE:KO) reported its Q2 2022 results on July 26, posting earnings per share of $0.70, beating market estimates by $0.03. The revenue of $11.30 billion climbed 11.62% year over year, beating Street consensus by $737 million. On July 27, Deutsche Bank analyst Steve Powers raised the price target on The Coca-Cola Company (NYSE:KO) to $65 from $64 and maintained a Hold rating on the shares after the Q2 results.

Among the hedge funds tracked by Insider Monkey, Warren Buffett’s Berkshire Hathaway is the leading position holder in The Coca-Cola Company (NYSE:KO) as of Q1 2022, with 400 million shares worth $24.7 billion. Overall, 64 hedge funds were bullish on the stock at the end of March. 

ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here is what the firm has to say:

“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.”

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