Jim Cramer’s 5 Favorite Dividend Aristocrats

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

Number of Hedge Fund Holders: 59

Dividend Yield as of December 16: 2.79%

The Coca-Cola Company (NYSE:KO) is one of Jim Cramer’s favorite dividend aristocrats. He called it a “textbook defensive stock” on his CNBC show on August 30, noting that its 2.8% dividend yield helps add protection. He observed that although shares of The Coca-Cola Company (NYSE:KO) have been flat over the last six months, Fed Chair Jerome Powell’s reminder that the central bank will continue rate hikes should boost the stock.

Jim Cramer reiterated his optimistic view on The Coca-Cola Company (NYSE:KO) on October 25, noting that the stock could go into the $60 dollar range after a strong third quarter. He observed that the international scale of The Coca-Cola Company (NYSE:KO) has helped keep the impact of inflation at bay. The company paid a $0.44 per share quarterly dividend to shareholders on December 15, and 2022 marked its 60th consecutive annual dividend increase. 

According to Insider Monkey’s data, 59 hedge funds were bullish on The Coca-Cola Company (NYSE:KO) at the end of Q3 2022, compared to 60 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in the company, with 400 million shares worth $22.40 billion. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Coca-Cola Company (NYSE:KO) was one of them. Here is what the fund 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 (The Coca-Cola Company (NYSE:KO)). 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 10 Best BDC Stocks To Buy and 16 Large-Cap Stocks with Insider Buying.