5 Stocks to Profit from Inflation

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

Number of Hedge Fund Holders: 64

As of June 23, The Coca-Cola Company (NYSE:KO) has gained 14.14% over the past twelve months and has a forward dividend yield of 2.88%. The company has grown its dividends for roughly 6 decades. 

On June 21, Morgan Stanley released its list of “top stocks insulated from risk with recession not fully priced in”, in which they mentioned stocks that the bank’s analysts have Overweight ratings on. The Coca-Cola Company (NYSE:KO) was among the bank’s top consumer staples picks.

At the end of Q1 2022, 64 hedge funds were long The Coca-Cola Company (NYSE:KO) with stakes worth $29.17 billion. This is compared to 70 positions in the preceding quarter with stakes worth $28.61 billion. 

As of March 31, Berkshire Hathaway owns the majority shares of The Coca-Cola Company (NYSE:KO) which makes it the dominating stakeholder. The fund’s stakes are valued at $24.79 billion. 

Here is what ClearBridge Investments had to say about The Coca-Cola Company (NYSE:KO) in its fourth-quarter 2021 investor letter:

“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.”