5 Best Beverage Stocks To Buy

2. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 58

The Coca-Cola Company (NYSE:KO) is one of the best beverage stocks to invest in. The company provides sparkling soft drinks, sparkling flavors, water, sports, coffee, tea, juice, value-added dairy, and plant-based beverages. On April 26, The Coca-Cola Company (NYSE:KO) declared a quarterly dividend of $0.46 per share, in line with previous. The dividend is payable on July 3, to shareholders of record on June 16. 

On April 26, Barclays increased its price target for The Coca-Cola Company (NYSE:KO) from $72 to $73. The firm also maintained an Overweight rating on the company’s shares, noting that the company had a promising beginning to 2023, surpassing profit expectations in the first quarter.

According to Insider Monkey’s fourth quarter database, 58 hedge funds were bullish on The Coca-Cola Company (NYSE:KO), compared to 59 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with 400 million shares worth $25.4 billion. 

Rowan Street Capital mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”