Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need. <\/p>\n
Continue \u00bb<\/a> <\/p>\n But with shares now trading near record highs, is the stock still a buy?<\/p>\n The first quarter notably marked the first earnings release with Henrique Braun as Coca-Cola’s CEO, after he took the reins from James Quincey on March 31. And it was a solid debut.<\/p>\n Coca-Cola’s first-quarter net revenue climbed 12% year over year to $12.5 billion, with organic revenue (non-GAAP), which strips out currency and the impact of acquisitions and divestitures, rising 10%.<\/p>\n This top-line momentum was fueled by an 8% jump in concentrate sales and 2% growth in price and\/or product mix. Further, Coca-Cola saw strong volume growth, too. Unit case volume grew 3%, with growth across all five of the company’s operating segments, including particularly strong performance in China, the United States, and India.<\/p>\n Further, the company’s profitability improved. Coca-Cola’s comparable operating margin expanded to 34.5% from 33.8% a year earlier, helping push comparable earnings per share up 18% year over year to $0.86.<\/p>\n Coca-Cola also reaffirmed its full-year organic revenue growth target of 4% to 5% but raised its comparable earnings-per-share growth outlook to a range of 8% to 9% — up from 7% to 8% previously. And for the full year, management reiterated its guidance for total free cash flow<\/a> of about $12.2 billion.<\/p>\n Why the dividend remains the story <\/p>\n Coca-Cola’s stock’s appeal arguably isn’t its rate of appreciation over the years (its shares meaningfully underperformed the S&P 500 over the last five years). It’s the cash the company sends back to shareholders — and the consistency with which it does it.<\/p>\n In February, the board raised the quarterly dividend to $0.53 per share from $0.51 — approximately a 4% increase. Showing how incredible the company’s dividend track record is, its latest dividend hike extended Coca-Cola’s streak of consecutive annual dividend increases to 64 years — a feat only a small slice of public companies on the planet can claim.<\/p>\n Story Continues <\/p>\n Even more, Coca-Cola’s dividend yield is meaningful. At an annualized rate of $2.12 per share, the dividend yield currently equates to about 2.7%. For context, the current dividend yield of the S&P 500 is just 1.1%.<\/p>\n Further, the dividend looks resilient, with a well-covered payout. Coca-Cola paid $8.8 billion in dividends in 2025 against full-year free cash flow of about $11.4 billion when adjusted to exclude a one-time contingent consideration payment for its Fairlife acquisition. And with management guiding for free cash flow of approximately $12.2 billion in 2026, the cushion could widen even further this year.<\/p>\n Of course, the stock isn’t without risk. The company always faces the persistent risk that younger generations will drink less soda. In addition, shares aren’t necessarily cheap, so there’s some valuation risk. Finally, given the company’s global distribution, geopolitical conflicts can disrupt its business.<\/p>\n But for investors who value a steadily rising, resilient dividend with a track record of more than six decades, Coca-Cola is a good investment. Put another way: I think Coca-Cola remains a top stock for investors looking for steady income. Sure, trading at about 26 times earnings, the stock isn’t cheap. But a company of Coca-Cola’s caliber arguably deserves a premium valuation like this.<\/p>\n Should you buy stock in Coca-Cola right now? <\/p>\n Before you buy stock in Coca-Cola, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Coca-Cola wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $492,752!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,327,935!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 991% \u2014 a market-crushing outperformance compared to 201% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of April 28, 2026. <\/p>\n Daniel Sparks<\/a> and his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/04\/2acc8014f8c2e3123c1dc81fad6d3746.png\")
Image source: The Motley Fool. A strong start under a new CEO <\/p>\n