Up 18% in 2026, Is Coca-Cola a Buy at an All-Time High?
Key Points
Coca-Cola hit an all-time high late last week.
It's a Dividend King, increasing its distributions for more than 50 consecutive years.
The stock isn't cheap at 25 times forward earnings, but its all-weather appeal makes it worth the premium to its growth.
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To paraphrase one of Coca-Cola's (NYSE: KO) old jingles, Coke is it these days, hitting a fresh high on Thursday. The beverage stock has risen 18% in 2026, roughly doubling the market's year-to-date return. The good news is, it's probably not too late to buy the king of pop.
There's a lot to like when it comes to Coca-Cola, even at its all-time high. The seller of syrup and bottling rights is a money machine, offloading production and fulfillment costs to local distributors. Its trailing net margin of 27.8% is a 15-year high. Put another way, for every $100 it's generating in revenue, $27.80 makes its way to the bottom line.
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Image source: Getty Images.
A liquid situation
Coca-Cola stock is ripe for uncertain times. It's been historically recession-resilient. A soft drink or one of its many beverages is a low-priced indulgence, even in lean times. In fact, Coca-Cola's business has been so steady that the company has increased its dividend for 64 consecutive years.
Despite the stock's strong performance, it still yields a respectable 2.6%. And it's a fair bet that Coca-Cola will increase its payout again come February of next year.
If there's one knock on the stock, it's that it isn't cheap. Coca-Cola trades at 25 times forward earnings, a premium to its historically modest top-line growth. But that's fine. You can grab a cheap beverage, but that's not going to happen for Coca-Cola stock itself.
If market volatility finds you warming up to low-beta stocks with all-weather businesses and more than six decades of increasing distributions, you know one stock that will quench your thirst. Coke is it.
Should you buy stock in Coca-Cola right now?
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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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