Is This Dividend King a Buy Near Its All-Time High?

2 hours ago 4

Prosper Junior Bakiny, The Motley Fool

Sat, May 2, 2026 astatine 2:20 PM CDT 4 min read

Coca-Cola (NYSE: KO) has crushed broader equities successful 2026 adjacent amid concerns astir geopolitical tensions, inflation, and a imaginable recession. The company's shares are up 13% this twelvemonth -- versus the S&P 500 instrumentality of conscionable 5% -- and the banal isn't that acold from its all-time high. Is Coca-Cola inactive worthy investing successful astatine existent levels? Let's find out.

A large prime for the existent situation

Coca-Cola's shares jumped connected the heels of its astir caller quarterly update. For the archetypal quarter, Coca-Cola's gross accrued by 12% twelvemonth implicit twelvemonth -- a beardown show for the beverage elephantine -- to $12.5 billion, connected the backmost of a 3% summation successful portion lawsuit volume. Coca-Cola's adjusted net per stock grew 18% twelvemonth implicit twelvemonth to $0.86. The company's escaped currency travel was $1.8 billion, compared with a antagonistic $5.5 cardinal successful the aforesaid play of the erstwhile fiscal year, and Coca-Cola besides grew its marketplace stock during the period.

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Coca-Cola logo.

Image source: The Motley Fool.

Some mightiness beryllium amazed by Coca-Cola's beardown performance, fixed the important economical uncertainty we face, marked by higher prices, among different things. However, Coca-Cola has proven clip and clip again that it boasts an incredibly resilient business. As a user staples leader, the institution tends to execute comparatively good adjacent successful challenging times. Further, its marque sanction effortlessly attracts customers, a important advantage. We tin besides constituent to the company's extended merchandise portfolio crossed aggregate beverage categories. These strengths item wherefore Coca-Cola is an fantabulous semipermanent bet.

It doesn't person the benignant of maturation imaginable that starring tech companies do. But Coca-Cola tin supply immoderate stableness to a well-diversified portfolio. Sure, the institution faces immoderate semipermanent risks, specified arsenic stiff contention -- including from caller marketplace entrants -- changing user preferences, and stricter regulations. Coca-Cola has dealt with each these before, though, and successfully so.

The institution perpetually launches caller products to support up with evolving user choices (including healthier oregon cheaper options to entreaty to health-conscious oregon price-sensitive customers). Coca-Cola tin besides grip competition, whether from established players successful the manufacture oregon newer companies, arsenic evidenced by its increasing marketplace stock during the period. Its wide moat, stemming from its marque sanction and helping it bid support abstraction successful the largest stores, is different important plus that tin assistance it withstand imaginable obstacles. Then we tin constituent retired that Coca-Cola is simply a fantastic dividend stock.

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