Coca-Cola's incredible track record of increasing dividend payouts makes it a good choice for income investors.
The company’s brand presence supports pricing power and huge profits.
Coca-Cola (NYSE: KO) needs no introduction. It's a leader in its industry, has a presence in more than 200 countries and territories, and sells 200 different drinks. The company is a top position for Warren Buffett-led Berkshire Hathaway, highlighting its quality.
This is an extremely stable and predictable business, but that doesn't mean investors aren't interested in the latest financial figures that provide key insights into how Coca-Cola is performing. Management plans to release third-quarter 2025 results on Oct. 21.
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Should you buy this beverage stock before then?
In my opinion, the only investors who should even consider buying this stock are those who want dividends. Coca-Cola pays a dividend yield of 3.08%, and it has increased the payout for an impressive 63 straight years.
In the past decade, shares have dramatically underperformed the S&P 500. The low-growth nature of the business doesn't bode well for big share gains.
Coca-Cola faces steady demand, as people love its products even in weak economic periods. It also has a powerful brand that supports its pricing power. This drives robust profitability that funds the dividend.
These factors make Coca-Cola a solid company that rarely gives investors any surprises. This minimizes the effect of any single quarterly earnings report.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.