5 Best Consumer Staple Stocks

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

Number of Hedge Fund Holders: 60

The Coca-Cola Company (NYSE:KO) is one of the best consumer staple stocks because of its stability and defensive nature. The company has shown some resilience in inflationary environments. The company’s total price return in the last five years stands at 52% and 111.7% in the previous decade. Moreover, the company has passed on its bottling business to third parties in return for royalty payments, giving it higher revenue margins.

The Coca-Cola Company (NYSE:KO) has increased its dividend consistently for the last 60 years. Since FY19, the company has increased its dividend by 10% annually. The latest quarterly dividend of $0.44 was declared in July, payable on October 3 to the shareholders of record on September 16. As of September 28, the company has a dividend yield of 3.04%.

Here is what ClearBridge Investments had to say about The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”