8 Best Beverage Dividend Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 69

Warren Buffett’s favorite, The Coca-Cola Company (NYSE:KO) ranks second on our list of the best beverage stocks that pay dividends. The American multinational beverage company is well-known to consumers, offering a diverse range of drink brands and maintaining a global presence. The company’s greatest competitive advantage is its strong brand, which creates an economic moat, helping it stand out from competitors in the industry. In addition to its long history of providing a consistent product, it has developed exceptional marketing expertise, ensuring the brand remains prominent and top-of-mind for consumers. The stock has delivered a nearly 7% return to shareholders since the start of 2024.

The Coca-Cola Company (NYSE:KO) generated nearly $12 billion in revenues in the third quarter of 2024, which beat analysts’ consensus by $290 million. The company’s cash performance was also strong as it generated $2.9 billion in operating cash flow during the quarter and its free cash flow came in at $1.6 billion. Its adjusted operating margin reached an impressive 30.7% in Q3, reflecting a highly profitable business model.

This consistent profitability has directly benefited shareholders, as The Coca-Cola Company (NYSE:KO) has increased its dividend for an astounding 62 consecutive years. It’s rare for investors to find companies with such an exceptional history of returning excess profits to shareholders. The company offers a quarterly dividend of $0.485 per share and has a dividend yield of 3.04%, as recorded on November 24.

At the end of the third quarter of 2024, 69 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), up from 68 in the previous quarter. These stakes are valued at nearly $35 billion in total. With 400 million shares, Warren Buffett’s Berkshire Hathaway owned the largest stake in the company.