KO Stock Recent News

Coca-Cola (KO) reported earnings 30 days ago. What's next for the stock?

Amazon (AMZN -1.21%), Coca-Cola (KO -0.21%), and Walt Disney (DIS -0.68%) are some of the country's most popular consumer brands. They also happen to make up a tenth of the Dow Jones Industrial Average (^DJI -0.43%).

The S&P 500 (^GSPC -0.24%) and Nasdaq Composite (^IXIC -0.67%) are hovering around all-time highs and are up 106.6% and 68%, respectively, from the start of 2023 through Aug. 15. But investors who feel the broader indexes are running hot don't have to overhaul their portfolios based on emotion.

KO's bold global marketing, from "Share a Coke" to local campaigns, is fueling revenue growth despite softer volumes.

I am downgrading Coca-Cola (KO) to neutral due to limited upside, underperformance versus the S&P 500, and a less attractive 2.95% dividend yield. KO's dividend growth and yield are now outpaced by alternatives like SCHD and QQQI, which offer higher income and faster dividend growth for income investors. KO faces valuation concerns, regulatory risks, and limited growth prospects compared to tech leaders like GOOGL, MSFT, and AMZN trading at similar or lower multiples.

Beverage specialist Coca-Cola (KO 1.45%) started the year strong, but it has flatlined -- at best -- since May. Since July, the stock has declined by 3%, while the S&P 500 has increased by 4% over the same period.

Income-seeking investors who value their time know the best dividend stocks don't need a lot of babysitting. Some go on decades-long payout-raising streaks.

Companies that own strong brands that consumers buy every day can provide steady streams of passive income for a lifetime. There's nothing like receiving regular cash deposits in your account to cushion the occasional bouts of market volatility.

This could be a good time to consider dividend-paying investments for your portfolio. If the Federal Reserve does lower rates as early as next month, stocks with long streaks of boosting payouts can deliver higher payouts at a time when fixed income options are going the other way.

Coca-Cola (KO 0.55%) is a business that needs no introduction. The king of soft drinks sells 200 different varieties of beverages and has a presence in over 200 countries and territories.