Coca-Cola Dominated the Summer's Biggest Sporting Event. Here's Why the Dividend Stock Is a Buy in August.

Coca-Cola (NYSE: KO) recently revealed impressive numbers for its FIFA World Cup campaign. The beverage giant activated its marketing campaign across 180+ markets, with its digital and social activations generating 60 billion digital impressions and over 9 billion social media views.

That push, which was supported by over 2,500 content creators, made Coca-Cola the number one brand by "share of voice" -- meaning it generated the most online chatter, social media engagement, and ad visibility of all the brands that participated in the FIFA World Cup. It also generated "record-setting" engagement with its Powerade brand. Over 80 million consumers engaged with its connected packaging (via QR codes or smart tags), enabling it to collect over 25 million first-party data records for future ad campaigns.

Image source: Coca-Cola.

Coca-Cola is one of the only companies that can pull off a marketing campaign of this scale. Let's see why that wide moat makes it a great dividend stock to buy in August.

Why is Coca-Cola such a resilient investment?

Coca-Cola has raised its dividend annually for 64 consecutive years, putting it in the elite club of Dividend Kings that have maintained that streak for at least 50 years. It maintained that streak through five global recessions and dozens of regional military conflicts. It pays a forward dividend yield of 2.4%, and its low payout ratio of 65% leaves it plenty of room for future hikes.

Coca-Cola might seem like a wobbly investment amid declining soda consumption rates. But over the past few decades, it has expanded its portfolio to include more brands of bottled water, fruit juices, teas, sports drinks, energy drinks, coffee, and alcoholic beverages. It also updated its sodas with smaller serving sizes, healthier versions, and new flavors. That expansion and evolution -- which it's supporting with new marketing and engagement campaigns -- allows it to steadily grow its revenues and profits.

Coca-Cola only produces the concentrates and syrups for its drinks, while its independent bottling partners manufacture and distribute the finished beverages. That asset-light model enables it to generate ample cash for dividends, buybacks, and big marketing campaigns.

Unlike PepsiCo (NASDAQ: PEP), Coca-Cola doesn't dabble in packaged foods -- which are exposed to a broader range of inflationary and competitive headwinds than its core beverages. That's why Coca-Cola's stock easily outperformed PepsiCo's over the past ten years.

Why is Coca-Cola's stock still worth buying?

From 2025 to 2028, analysts expect Coca-Cola's revenue and EPS to grow at CAGRs of 3% and 7%, respectively. That growth should be driven by AI-driven improvements to its restocking system, stronger sales of its health-oriented and wellness drinks (Fairlife dairy products, BODYARMOR functional sports drinks, and Coca-Cola Zero), and its ongoing transition from traditional mass advertising to data-driven consumer engagement.

Coca-Cola already showcased those forward-thinking marketing strategies at the FIFA World Cup this year, and it plans to do it again during the 2028 Summer Olympics in Los Angeles. By collecting more data on its customers, it can deploy more personalized marketing campaigns, AI-driven promotions, and automated loyalty rewards through social and digital channels. That strategy should reinforce its brand loyalty while reducing customer acquisition costs.

Coca-Cola isn't an exciting investment, and it might not seem like a bargain at 25 times next year's earnings. But it's still a rock-solid long-term investment because it has a wide moat, plenty of irons in the fire, and enough cash to support its annual dividend hikes.

That's why Coca-Cola remains one of my top holdings (4.6% of my portfolio), and why I'd be comfortable buying more shares even as it hovers near its all-time high. So if you're looking for a solid blue chip dividend stock to buy and forget, Coca-Cola checks all the right boxes.

Leo Sun has positions in Coca-Cola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.