5 Best Dividend-Paying Beverage Stocks to Buy Now

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

Number of Hedge Fund Holders: 76

Dividend Yield as of May 26: 2.63%

The Coca-Cola Company (NYSE:KO) is one of the most globally recognized brands in the world. The company manufactures and sells various nonalcoholic beverages in the United States and internationally.

On May 21, Barclays raised its price target on The Coca-Cola Company (NYSE:KO) from $85 to $89, while keeping an ‘Overweight’ rating on the shares. The revised target reflects an upside of over 9% from the current price level.

Similarly, earlier on May 18, Citi analyst Filippo Falorni also slightly boosted the firm’s price target on The Coca-Cola Company (NYSE:KO) from $90 to $91, while maintaining a ‘Buy’ rating on the shares. The analyst firm expects Coke to benefit from the upcoming FIFA World Cup this summer, since Coca-Cola is an official partner in the tournament and is executing its largest-ever marketing campaign for the games.

The Coca-Cola Company (NYSE:KO) topped expectations across nearly every key metric in its Q1 2026 report last month, despite a complex external environment. The company now expects its annual comparable EPS to grow 8% to 9% YoY in full-year 2026, an increase from its prior estimate of 7% to 8% due to the lower effective tax rate.

While we acknowledge the potential of KO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KO and that has 100x upside potential, check out our report about the cheapest AI stock.

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