Jim Cramer’s 5 Favorite Dividend Aristocrats

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

Number of Hedge Fund Holders: 60

Dividend Yield as of September 12: 2.84%

The Coca-Cola Company (NYSE:KO) is a “textbook defensive stock” according to Jim Cramer. The journalist investor thinks the stock offers protection for investors in a slowing economy. The Coca-Cola Company (NYSE:KO) has been growing its dividends for roughly 60 years and boasts a 5-year dividend CAGR of 3.62% and a payout ratio of 70.5%.

On July 21, The Coca-Cola Company (NYSE:KO) declared a quarterly cash dividend of $0.44 per share of the company’s common stock. The dividend is payable on October 3 to investors of record on September 16. As of September 12, the stock is offering a forward dividend yield of 2.84%, which the company backs with free cash flows of $10 billion.

On July 26, The Coca-Cola Company (NYSE:KO) announced earnings for the second quarter of fiscal 2022. The company reported earnings per share of $0.70 and beat estimates by $0.03. The company generated a revenue of $11.3 billion and beat expectations by $737 million.

This September, HSBC analyst Carlos Laboy raised his price target on The Coca-Cola Company (NYSE:KO) to $76 from $72 and reiterated a Buy rating on the shares. The analyst noted that the company has new revenue drivers in Latin American markets.

At the close of Q2, 60 hedge funds were bullish on The Coca-Cola Company (NYSE:KO) with stakes worth $28.3 billion. As of June 30, Berkshire Hathaway owns 400 million shares of The Coca-Cola Company (NYSE:KO) and is the largest investor in the company. The investment covers 8.38% of Warren Buffett’s 13F portfolio.