Coca-Cola (KO)
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Many investors would say that the stocks owned by Warren Buffett are like the simple black dress – always in fashion. That may be a weird way to think about Coca-Cola (NYSE:KO), but there’s nothing strange about owning the company’s stock.
Coca-Cola fits Buffett’s definition of a “forever” stock. But critics might note that KO stock has only grown 30% over the past five years and is currently just above pre-pandemic levels. Plus, at 26-times earnings, there are cheaper options out there.
But the story of Coca-Cola is its iconic brand that allows the company to generate steady earnings back to shareholders. Coke has increased its dividend for 61 consecutive years, making it part of the exclusive Dividend Kings group. And iys dividend yield of 2.9% is above the sector average of 2.62%.
Like that simple black dress, Coca-Cola isn’t a stock you’ll embrace daily. But in times like these, you’ll be glad it’s in your portfolio.