The Coca-Cola Company (KO): A Defensive Play with Steady Payouts

The Coca-Cola Company (NYSE:KO) is included among the 12 Best Dividend Aristocrat Stocks to Invest in Right Now.

The Coca-Cola Company (NYSE:KO) may have expanded into a beverage behemoth with hundreds of brands and products worldwide, but it still winds up leaning on its staple Coke and Coke Zero, the latter of which speaks to consumers looking for lower-sugar alternatives.

The easy business model of The Coca-Cola Company (NYSE:KO) makes it a good long-term stock. Its products are inexpensive and broadly popular, and it has enjoyed relative stability over the years. The company has also shown its pricing power by bringing its prices up with inflation without affecting its sales, demonstrating the timeless nature of the very powerful brands it possesses.

Also, The Coca-Cola Company (NYSE:KO) has been returning value to its shareholders for decades through dividends. The company has raised its dividends for 63 consecutive years, making KO one of the top dividend aristocrat stocks. On a quarterly basis, it pays out a dividend of $0.51 per share and has a dividend yield of 3.11%, as of September 26.

While we acknowledge the potential of KO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.