5 Best Dividend Stocks To Buy and Hold

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

Number of Hedge Fund Holders: 58
Dividend Yield as of April 21: 2.87%

The Coca-Cola Company (NYSE:KO) is next on our list of the best dividend stocks to buy and hold. In April, Barclays raised its price target on the stock to $72 with an Overweight rating on the shares, expecting the company to show volume growth in its upcoming quarter.

The Coca-Cola Company (NYSE:KO) has been raising its dividends consistently for the past 61 years. It currently pays a quarterly dividend of $0.46 per share and has a dividend yield of 2.87%, as of April 21.

At the end of Q4 2022, 58 hedge funds in Insider Monkey’s database reported having stakes in The Coca-Cola Company (NYSE:KO). These stakes have a consolidated value of $28.8 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%).”