Why Investors Ought to Stick With The Coca-Cola Company (KO)

The company got off to a great start in 2013 with core earnings of $0.77 per share, a 12% increase in organic revenue growth of 4.4%. Focused on improving productivity in every operating sector, the company remains committed to creating “long-term value to shareholders.” Shares are trading at a 52-week high and yield a very satisfying 2.7%. Expectations are for Pepsi’s revenue to increase 2% in the second quarter to $16.8 billion and EPS to rise from $1.12 to $1.19.

Dr Pepper Snapple Group Inc. (NYSE:DPS) is the fifth largest soft drink seller with a 6.5% market share. The soda has a very distinct taste and enjoys a staunch and loyal following. Hailed as the oldest popular soft drink, the company also owns Snapple. First quarter EPS increased 15.22% to $0.53, up from $0.46 in the year ago quarter. Revenue rose 1.32% to $1.38 billion. A commendable showing and perhaps tough act to follow. Second quarter earnings are projected to be flat at $0.85 per share.

Cheers to Coke’s dividend history

Income thirsty investors find Coke’s dividend history appetizing indeed. The company has paid a quarterly dividend since 1920, and has increased its dividend in each of the last 50 years.

Berkshire Hathaway’s chief, Warren Buffett, is a big fan. The investment guru, considered the greatest investor of all time, owns 400 million shares of Coke. It is the Oracle of Omaha’s largest holding at 20.1% of his expansive portfolio. Buffett maintains he will never sell a single share of the soda giant. “I like to bet on sure things,” Buffett said of his Coke investment.

Given the choice, I’ll drink a Diet-PepsiCo, Inc. (NYSE:PEP) over a Coke. But, since I too like to bet on sure things when it comes to investing, I’m betting on Coke as a top investment choice for long-term goal oriented investors.

The article Why Investors Ought to Stick With Coke originally appeared on Fool.com and is written by Diane Alter.

Diane Alter has no position in any stocks mentioned. The Motley Fool recommends The Coca-Cola Company (NYSE:KO) and PepsiCo (NYSE:PEP). The Motley Fool owns shares of PepsiCo, Inc. (NYSE:PEP). Diane is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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