Few Stocks Match Coca-Cola’s Dividend Stability

The Coca-Cola Company (NYSE:KO) is among the best dividend stocks for a bear market.

The company has paid a dividend since 1920 and has raised its annual payout for 63 consecutive years, a streak topped by only a few publicly traded companies.

A row of factory workers assembling bottles of sparkling soft drinks on a conveyor belt.

The Coca-Cola Company (NYSE:KO) operates in a space that offers rare stability, even when the economy takes a hit. Its strength lies in two key factors: consistent demand and the ability to raise prices without losing customers. As a provider of consumer staples, the company benefits from steady demand even during economic downturns. While it isn’t immune to challenges, its core operations tend to hold up well when the broader market struggles. In addition, when sales volume dips, Coca-Cola can often raise prices without losing customers.

This resilience is reflected in its valuation, both its price-to-sales and price-to-earnings ratios are above their five-year averages. Given its strong fundamentals and track record, The Coca-Cola Company (NYSE:KO) is well-positioned to continue increasing its dividend in the years ahead. The company’s five-year average payout ratio is around 80%, and given its solid cash generation, investors expect growing dividends in the coming years as well.

The Coca-Cola Company (NYSE:KO) offers a dividend yield of 2.88%, as of June 17.

While we acknowledge the potential of KO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  15 Best Next Generation Dividend Aristocrats to Buy and 10 Best Dividend Stocks to Buy for Dependable Dividend Growth

Disclosure. None.