5 Defensive Stocks in Billionaire Ray Dalio’s Latest Portfolio

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

Number of Hedge Fund Holders: 64

Ray Dalio’s Bridgewater Associates’ Holdings: $740,145,000

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 2.98%

Stock Price as of June 24: $63.04

The Coca-Cola Company (NYSE:KO) is an Atlanta, Georgia-based beverage company.

In a note issued to investors on June 21, strategist Mike Wilson at Morgan Stanley pinpointed Coca-Cola as one of the companies with its earnings relatively insulated from an economic downturn. The Coca-Cola Company (NYSE:KO) stock offers a 29% upside from the current levels. The company also has the distinction of having Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRK-B) as the biggest shareholder, with a holding of $24.8 billion. Coca-Cola is the fifth largest holding in the portfolio of Oracle of Omaha.

With a dividend yield of more than 2.7%, The Coca-Cola Company (NYSE:KO) stock is also a member of the Dividend Aristocrat and Dividend King list for increasing its annual dividend for the past 60 consecutive years.

ClearBridge Investments discussed its outlook on The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here’s what the firm said:

“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.”