3 Reliable Dividend Stocks For Uncertain Times: Coca-Cola, AbbVie, And McDonald’s

NYSE: KO | Coca-Cola Company (The)  News, Ratings, and Charts

Prior to the pandemic, only retired people and Trusts and Foundations generally preferred investing in dividend-yielding stocks. But this stereotype no longer holds. With millions of people unemployed due to a pandemic-driven global recession, dividend stocks have gained popularity as investors seek alternative sources of income.

This environment, accompanied by Fed’s near-zero interest rate policy, has propelled many investors who are seeking stability and income to divert capital towards dividend stocks. The Vanguard High Dividend Yield ETF VYM has gained 13.4% over the past six months, reflecting investors’ move toward high dividend-yielding stocks.

The Coca-Cola Company (KO), AbbVie Inc. (ABBV), and McDonald’s Corporation (MCD) have been able to deliver regular dividends over the years, and should be good bets now.

The Coca-Cola Company (KO)

The world’s largest beverage company needs no introduction. Operating worldwide, the company markets more than 500 non-alcoholic beverage brands including Coca-Cola, Diet Coke, Fanta, Thumbs Up, and Sprite.

KO pays $1.64 in dividends annually, yielding 3.1% at its current price. It has a payout ratio of 86.5% of the net income. The company’s dividend payments have grown at a CAGR of 5.6% over the past five years. KO’s Non-GAAP operating margin has increased 230 basis points year-over-year to 30.4% in the third quarter ended September 30, 2020.

Analysts expect KO’s EPS to rise 11.6% to $2.12 for the next year ending December 31, 2021. The company has an impressive earnings surprise history; it beat the Street EPS estimates in three of the trailing four quarters. The consensus revenue estimate of $36.55 billion for the next year indicates a 10.5% rise. KO has gained 14.4% over the past six months.

How does KO stack up for the POWR Ratings?

  • A for Trade Grade.
  • B Buy & Hold Grade.
  • B for Peer Grade.
  • A for Industry Rank.
  • B for Overall POWR Rating.
1 2 3
View single page >> |

Disclaimer: Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.