5 Best DRIP Stocks To Own

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

Dividend Yield as of January 16: 2.87%

The Coca-Cola Company (NYSE:KO) offers an Automatic Dividend Reinvestment Service that allows the shareholders to have full rights and privileges on the reinvested shares. The company has been making regular dividend payments to shareholders since 1920 while raising its payouts for the past 60 years. It currently pays a quarterly dividend of $0.44 per share and has a dividend yield of 2.87%, as of January 16. The company is among the best DRIP stocks to own.

Deutsche Bank raised its price target on The Coca-Cola Company (NYSE:KO) to $62 in December but maintained a Hold rating on the shares. The firm highlighted the company’s positive developments in 2022.

As of the end of Q3 2022, 59 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), with a collective value of $25 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%).”