5 Best DRIP Stocks To Buy in 2022

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

Number of Hedge Fund Holders: 70

Dividend Yield as of April 25: 2.70%

The Coca-Cola Company (NYSE:KO) has been consistent with hiking its dividends for more than 50 years, and as of April 25, the stock has a forward dividend yield of 2.70% and has gained 21.27% over the past six months. On February 10, The Coca-Cola Company (NYSE:KO) reported earnings for the fiscal fourth quarter of 2021. The company generated revenues of $9.47 billion, up 10.08% year over year, and beat revenue estimates by $570 million. Moreover, the company registered an EPS of $0.45 and outperformed the market consensus by $0.04.

This March, JPMorgan analyst Andrea Teixeira raised her price target on The Coca-Cola Company (NYSE:KO) to $68 from $65 and reiterated an Overweight rating on the shares.

The Coca-Cola Company (NYSE:KO) is an investor’s favorite DRIP stock. At the end of the fourth quarter of 2021, 70 hedge funds held stakes in The Coca-Cola Company (NYSE:KO) worth more than $28.6 billion. This is compared to 61 hedge funds in the previous quarter with total stake of  $25.13 billion.

As of December 31, 2021, Berkshire Hathaway is the most prominent hedge fund having stakes in The Coca-Cola Company (NYSE:KO). Warren Buffett’s hedge fund owns 400 million shares of stock which equate to a stake value of $23.68 billion.

Here is what ClearBridge Investments had to say about The Coca-Cola Company (NYSE:KO) in the firm’s fourth-quarter 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.”