5 Best Stocks to Buy to Protect Against Inflation in 2022 and Beyond

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

Number of Hedge Fund Holders: 64

The Coca-Cola Company (NYSE:KO) is another consumer staples stock that should be considered to buy to protect against inflation in 2022 because of the company’s rich dividend history and strong consumer demand. On April 25, The Coca-Cola Company (NYSE:KO) announced earnings for the first quarter of fiscal year 2022. The company reported earnings per share of $0.64, beating estimates by $0.06. The company generated a revenue of $10.50 billion for the quarter, up 16.44% year over year, ahead of expectations by $670.79 million. Moreover, as of June 17, the stock has returned 6.03% to investors over the past twelve months and has a forward dividend yield of 2.98%.

On May 23, Morgan Stanley released its 15 stock ideas that can weather a bear market, and The Coca-Cola Company (NYSE:KO) was one of them. Morgan Stanley analyst Mike Wilson has a $76 price target and an Overweight rating on The Coca-Cola Company (NYSE:KO).

At the end of Q1 2022, 64 hedge funds were long The Coca-Cola Company (NYSE:KO) with stakes worth $29.17 billion. This is compared to 70 hedge funds in Q4 2021 with stakes worth $28.61 billion. As of Q1 2022, Berkshire Hathaway is the most prominent shareholder in The Coca-Cola Company (NYSE:KO) with stakes of $24.79 billion.

Here is what ClearBridge Investments had to say about The Coca-Cola Company (NYSE:KO) in its “Dividend Strategy” 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.”