In this article, we discuss top 10 dividend stocks. If you want to read our detailed discussion on dividend investments and the historical performance of dividend stocks, go directly to read Top 25 Dividend Stocks.
10. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of July 25: 2.86%
The Coca-Cola Company (NYSE:KO) is one of the strongest dividend players in the market, increasing its dividends consecutively for the past 60 years. The company has a payout ratio of 71.2%, compared with 82.2% in 2021. It currently offers a quarterly dividend of $0.44 per share, with a yield of 2.86%, as of July 25.
In July, JPMorgan called The Coca-Cola Company (NYSE:KO) a defensive stock with strong underlying momentum. The firm set a $70 price target on the stock with an Overweight rating on the shares.
At the end of Q1 2022, 64 hedge funds in Insider Monkey’s data held over $29 billion worth of stakes in The Coca-Cola Company (NYSE:KO). Among these hedge funds, Berkshire Hathaway was the largest stakeholder of the Georgia-based company in Q1, owning 400 million shares.
“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.”