Coca-Cola Screams Buy Me As It Nears 52-Week Low

Coca-Cola (NYSE: KO) shares are hovering just above their 52-week low after an unusual 13% drop last month. Before this latest plunge, Coca-Cola was one of the few high-profile stocks to post gains in 2022.

Since this global giant generates about two-thirds of its revenue internationally, it looks like the rising dollar has finally caused shares to sell off. Here's why this drop has created a buying opportunity for this blue-chip stock. While the current sell-off is certainly not happy for shareholders, the company's overall performance this year has boosted its reputation as a defensive stock. Coca-Cola is down 7% year to date, but it is performing much better than the overall market. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are in bear market territory, down 20%, 24.5% and 33% respectively. You can count on Coca-Cola to raise its dividend every year, as much as you can count on seeing Coca-Cola commercials featuring the iconic polar bears drinking Coke come Christmas time. The company has a dividend history that is hard to match. After raising its quarterly dividend by nearly 5% last February, Coca-Cola has increased its annual dividend payment for 60 consecutive years, making it not only a Dividend Aristocrat but also a Dividend King. The company paid out $7.3 billion in dividends to shareholders in 2021 and has paid out over $70 billion since 2010. Coca-Cola shares yield about 3.2% going forward. Coca-Cola may be a 130-year-old company, but that doesn't mean it can't learn new tricks. It recently teamed up with Molson Coors Beverage to launch alcoholic drinks such as the popular Topo Chico Ranch Water Hard Seltzer and Simply Spiked Lemonade. The company also teamed up with Brown-Forman to launch a pre-made ready-to-drink version of the famous Jack and Coke cocktail. Market research firm ISWR found that the ready-to-drink cocktail segment will grow by 51% in 2021, outpacing the growth of the overall alcoholic beverage sector. Now Coca-Cola is building on its relationship with Molson Coors and building on the success of Topo Chico Hard Seltzers by launching Topo Chico Spirited, which will be available in 20 US markets next year. Coca-Cola is a blue-chip stock that has proven its defensive credentials over the past year. The company has protected shareholders' capital at a time when many stocks have suffered heavy losses. The company has an excellent dividend history and is buying back shares, and my only concern in this area is the high dividend payout ratio. It's rare to get the chance to buy a strong stock like this one near its 52-week low, making this a good time to add Coca-Cola shares to your portfolio as a long-term holding. The investment information, comments and recommendations contained herein do not constitute investment advice. Investment advisory services are provided on a personalized basis, taking into account the risk and return preferences of individuals. The content, comments and recommendations contained herein, which are in no way directive in nature, are of a general nature. These recommendations may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not produce results in line with your expectations. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!