Investors seeking a blue-chip long-term core portfolio holding can’t do much better than Coca-Cola (NYSE:KO) right now. This stock is one that has lagged the broader markets in terms of its recovery. In fact, this stock is still more than 15% below its pre-pandemic levels.
Investors have a lot to be concerned about right now with respect to Coke’s business model. Shutdowns imposed globally related to the pandemic have impacted the company’s restaurant and bulk businesses. These businesses provide a tremendous amount of volume, and are also very profitable – until the pandemic comes to an end, there could indeed be more in the way of headwinds on the horizon.
However, in terms of companies with the potential to come out of this pandemic flying, Coke remains a top pick of mine right now. The fact that Coke’s share price has been so depressed lately has bolstered the yield of this blue chip name.
Right now, investors can pick up a very healthy dividend yield of 3.3%, which is incredible considering the stability this company provides and where the broader yield of the stock market is today. Furthermore, when one considers where bonds are trading at today, this 3.3% yield is extremely attractive.
Coke recently beat on earnings, and I think will continue to do so, as long as investors remain bearish about this company’s ability to earn its way out of this recession. I think coming out of the pandemic, Coke remains one of the dividend companies every investor should own right now.
Invest wisely, my friends.
