5 Best Dividend Aristocrat Stocks To Buy Heading Into Recession

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

Number of Hedge Fund Holders: 60

Dividend Yield as of September 27: 3.10%

Number of Years of Consecutive Dividend Growth: 60

The Coca-Cola Company (NYSE:KO) is one of the best dividend stocks to buy heading into recession, given its defensive nature and the 60 consecutive years of dividend increases under its belt. On July 21, The Coca-Cola Company (NYSE:KO) declared a quarterly dividend of $0.44 per share, which is distributable on October 3 to shareholders of record as of September 16. The company delivers a dividend yield of 3.10% as of September 27. 

HSBC analyst Carlos Laboy on September 6 raised the price target on The Coca-Cola Company (NYSE:KO) to $76 from $72 and maintained a Buy rating on the shares. The Coca-Cola Company (NYSE:KO) has new revenue drivers in Latin America as it extends its once-exclusive sales and delivery system to other brands, the analyst told investors in a research note.

As of the second quarter of 2022, Ray Dalio’s Bridgewater Associates is a notable stakeholder of The Coca-Cola Company (NYSE:KO), with 10.8 million shares worth about $681 million. Overall, 60 hedge funds were bullish on The Coca-Cola Company (NYSE:KO) at the end of June, compared to 64 funds in the prior quarter. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Coca-Cola Company (NYSE:KO) was one of them. Here is what the fund said:

“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 (The Coca-Cola Company (NYSE:KO)). 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.”