The Best Dividend King to Buy Now, According to Coca-Cola-Hedge Funds

  The Best Dividend King to Buy Now, According to Coca-Cola-Hedge Funds   This Stock Offers High Dividend Yield And Long-Term Stability.     Investors will do best by investing in dividend stocks. It would be an ideal strategy for them to hold the stocks that will appreciate in value and thus generate income. It provides stability to investors when prices rise and a correction may be inevitable. Coca-Cola KO (NYSE) $56,09 -0,17 (-%0,30) was one of the excellent stock buys for dividends in July.

Totally dependent on dividend

Increasing its dividend every year for at least 50 years, Coca-Cola is a Dividend King, The dividend yield is typically around 3%, and it stubbornly stays where it is. Coke has struggled greatly during the pandemic, as half of its revenue comes from its on-the-go segment, which usually includes restaurants, movie theaters and the like. In general, according to CEO James Quincy, Coca-Cola is a cash machine that takes more than it needs to run and pays most of it in dividends. Typical payout ratio was closer to 100%, higher than that as earnings fell as the company struggled.

This Stock Offers High Dividend Yield And Long-Term Stability.

  As Coca-Cola continues to recover, both numbers should reverse and release more funds to invest in future growth. Over the past year, the company has removed roughly 200 brands from its "key brands" list, consisting of small, mostly local labels, which account for less than 2% of volume and 1% of revenue. Thus, Coca-Cola can continue to grow by allocating more resources to its larger-volume brands and adapting these brands to the economy. It is eagerly expected to announce its 2021 second quarter earnings on July 21.    

Source: The Motley Fool

 

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