Three Stocks to Buy and Never Sell
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Coca-Cola's Durability: Founded in 1892, The Coca-Cola Company has a 134-year history and owns 32 brands generating over $1 billion annually, achieving a 7% organic revenue growth rate over the past decade, indicating strong growth potential in emerging markets.
- NextEra Energy's Safety: As the largest utility company in the U.S., NextEra Energy owns Florida Power & Light, serving approximately 12 million customers, and expects a 6% dividend growth over the next two years, with a 59% payout ratio providing financial flexibility.
- Realty Income's Stability: Realty Income owns 15,571 properties leased to tenants across 92 industries, achieving positive operational returns for 31 consecutive years, with occupancy rates never falling below 96.6%, showcasing its strong competitive position in the market.
- Attractive Dividend Growth: Coca-Cola has increased its dividends for 64 years, while NextEra Energy and Realty Income offer dividend yields of 2.9% and 5.4%, respectively, providing income investors with stable cash flow and long-term growth potential.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 76.820
Low
71.00
Averages
79.33
High
85.00
Current: 76.820
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and Santa Clara. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coca-Cola Outperforms S&P 500 in 2026
- Dividend Performance: Coca-Cola, known as a 'Dividend King', achieved over 12% returns in 2026, outperforming the S&P 500 by nearly a percentage point, demonstrating its stable business model and strong market demand.
- Growth Potential Analysis: Analysts estimate Coca-Cola's earnings per share will grow at an average rate of 7% to 8% annually over the next three to five years, and despite its current P/E ratio nearing 25, its stable cash flow and brand strength still make it attractive.
- Market Positioning Advantage: Coca-Cola's products are widely recognized and consumed, covering a range of beverages, and it shows resilience during economic downturns, further solidifying its position in investors' minds.
- Cautious Investment Advice: Although Coca-Cola is a blue-chip stock, its current PEG ratio exceeds 3.0, suggesting investors should wait for a more favorable valuation, targeting a P/E ratio around 20, with an estimated share price of $65 for better future returns.
See More
Coca-Cola and the Advantages of Dividend Investing
- Coca-Cola's Stability: Founded in 1892, Coca-Cola has a 134-year history and owns 32 brands generating over $1 billion annually, achieving a 7% organic revenue growth over the past decade, showcasing its strong competitive position in rapidly growing markets.
- NextEra Energy's Growth Potential: As the largest utility company in the U.S., NextEra Energy offers a 2.9% dividend yield and plans for approximately 6% growth over the next two years, with an acquisition of Dominion Energy expected to further solidify its market leadership.
- Realty Income's Yield Advantage: Realty Income, the sixth-largest global REIT, owns 15,571 properties and provides a 5.4% dividend yield, having increased dividends for 31 consecutive years, demonstrating its strong business resilience and stable cash flow.
- Income Investment Strategy: Successful income investing goes beyond high dividend yields, focusing on identifying companies with long-term growth potential and stable cash flows to navigate challenges posed by inflation and economic uncertainty.
See More
Three Stocks to Buy and Never Sell
- Coca-Cola's Durability: Founded in 1892, The Coca-Cola Company has a 134-year history and owns 32 brands generating over $1 billion annually, achieving a 7% organic revenue growth rate over the past decade, indicating strong growth potential in emerging markets.
- NextEra Energy's Safety: As the largest utility company in the U.S., NextEra Energy owns Florida Power & Light, serving approximately 12 million customers, and expects a 6% dividend growth over the next two years, with a 59% payout ratio providing financial flexibility.
- Realty Income's Stability: Realty Income owns 15,571 properties leased to tenants across 92 industries, achieving positive operational returns for 31 consecutive years, with occupancy rates never falling below 96.6%, showcasing its strong competitive position in the market.
- Attractive Dividend Growth: Coca-Cola has increased its dividends for 64 years, while NextEra Energy and Realty Income offer dividend yields of 2.9% and 5.4%, respectively, providing income investors with stable cash flow and long-term growth potential.
See More
Coca-Cola's Steady Dividend Income Stream
- Stable Dividend Yield: Coca-Cola currently pays a quarterly dividend of $0.53, translating to an annual payout of $2.12, with a dividend yield of 2.76%, significantly outperforming the S&P 500 index, highlighting its appeal as a top dividend stock.
- Investment Demand Insight: Investors looking to generate $10,000 in annual income from Coca-Cola would need to invest over $362,000 to acquire 4,717 shares, underscoring the importance of its stable income stream for income-focused investors.
- Consistent Dividend Growth: Coca-Cola has raised its quarterly dividend for 64 consecutive years, demonstrating strong financial health and commitment to shareholders, with expectations that this trend will continue, bolstering investor confidence.
- Strong Financial Performance: In Q1 of fiscal 2026, the company reported $4 billion in net income on $12.5 billion in revenue, achieving a 32% margin, indicating Coca-Cola's capacity to continue returning capital to shareholders while maintaining stable product demand against macroeconomic fluctuations.
See More
Coca-Cola Dividend Investment Analysis
- Stable Dividend Income: Coca-Cola pays a quarterly dividend of $0.53, equating to an annual payout of $2.12, with a current stock price of $76.82, requiring an investment of over $362,000 to acquire 4,717 shares for generating $10,000 in annual income, highlighting its appeal as a steady income source.
- Dividend Yield Advantage: With a dividend yield of 2.76%, Coca-Cola significantly outperforms the S&P 500 index, indicating its competitive position in the market, and the company has raised its quarterly payout for 64 consecutive years, showcasing robust financial health and commitment to shareholder returns.
- Strong Financial Performance: In the first quarter of fiscal 2026, Coca-Cola reported a net income of $4 billion on revenues of $12.5 billion, resulting in a 32% margin, providing a solid foundation for ongoing dividend payments and demonstrating the company's ability to maintain stable operations amid economic fluctuations.
- Stable Market Demand: Given the minimal cyclicality of demand for Coca-Cola's products, the company's operations remain stable, allowing for continued dividend payments regardless of macroeconomic conditions, which enhances investor confidence in its long-term investment potential.
See More
Recommended High-Yield ETF: Schwab U.S. Dividend Equity ETF
- Income and Growth Balance: The Schwab U.S. Dividend Equity ETF boasts a dividend yield of 3.25% and has risen 19% year-to-date in 2026, delivering slightly lower growth than the S&P 500 while providing nearly three times the dividend income, indicating a strong balance between income and growth.
- Expense Ratio Advantage: With an expense ratio of just 0.06%, investors pay only $6 for every $10,000 invested, making it competitive among similar products and enhancing net returns for investors.
- Robust Portfolio Composition: The ETF tracks the Dow Jones U.S. Dividend 100 Index, comprising 100 stocks with a history of at least 10 years of dividend payments, ensuring financial health among constituents and reducing the risk of dividend cuts due to financial troubles, thus enhancing long-term investment safety.
- Diversified Holdings Structure: The top ten holdings account for about 43% of the ETF, with 18% in consumer defensive stocks, 15% in energy, and 18% in healthcare, providing a diversified allocation that helps maintain stability and risk resistance in the event of a market pullback.
See More
Coca-Cola Outperforms S&P 500 in 2026
- Dividend Performance: Coca-Cola, known as a 'Dividend King', achieved over 12% returns in 2026, outperforming the S&P 500 by nearly a percentage point, demonstrating its stable business model and strong market demand.
- Growth Potential Analysis: Analysts estimate Coca-Cola's earnings per share will grow at an average rate of 7% to 8% annually over the next three to five years, and despite its current P/E ratio nearing 25, its stable cash flow and brand strength still make it attractive.
- Market Positioning Advantage: Coca-Cola's products are widely recognized and consumed, covering a range of beverages, and it shows resilience during economic downturns, further solidifying its position in investors' minds.
- Cautious Investment Advice: Although Coca-Cola is a blue-chip stock, its current PEG ratio exceeds 3.0, suggesting investors should wait for a more favorable valuation, targeting a P/E ratio around 20, with an estimated share price of $65 for better future returns.
See More
Coca-Cola and the Advantages of Dividend Investing
- Coca-Cola's Stability: Founded in 1892, Coca-Cola has a 134-year history and owns 32 brands generating over $1 billion annually, achieving a 7% organic revenue growth over the past decade, showcasing its strong competitive position in rapidly growing markets.
- NextEra Energy's Growth Potential: As the largest utility company in the U.S., NextEra Energy offers a 2.9% dividend yield and plans for approximately 6% growth over the next two years, with an acquisition of Dominion Energy expected to further solidify its market leadership.
- Realty Income's Yield Advantage: Realty Income, the sixth-largest global REIT, owns 15,571 properties and provides a 5.4% dividend yield, having increased dividends for 31 consecutive years, demonstrating its strong business resilience and stable cash flow.
- Income Investment Strategy: Successful income investing goes beyond high dividend yields, focusing on identifying companies with long-term growth potential and stable cash flows to navigate challenges posed by inflation and economic uncertainty.
See More
Three Stocks to Buy and Never Sell
- Coca-Cola's Durability: Founded in 1892, The Coca-Cola Company has a 134-year history and owns 32 brands generating over $1 billion annually, achieving a 7% organic revenue growth rate over the past decade, indicating strong growth potential in emerging markets.
- NextEra Energy's Safety: As the largest utility company in the U.S., NextEra Energy owns Florida Power & Light, serving approximately 12 million customers, and expects a 6% dividend growth over the next two years, with a 59% payout ratio providing financial flexibility.
- Realty Income's Stability: Realty Income owns 15,571 properties leased to tenants across 92 industries, achieving positive operational returns for 31 consecutive years, with occupancy rates never falling below 96.6%, showcasing its strong competitive position in the market.
- Attractive Dividend Growth: Coca-Cola has increased its dividends for 64 years, while NextEra Energy and Realty Income offer dividend yields of 2.9% and 5.4%, respectively, providing income investors with stable cash flow and long-term growth potential.
See More
Coca-Cola's Steady Dividend Income Stream
- Stable Dividend Yield: Coca-Cola currently pays a quarterly dividend of $0.53, translating to an annual payout of $2.12, with a dividend yield of 2.76%, significantly outperforming the S&P 500 index, highlighting its appeal as a top dividend stock.
- Investment Demand Insight: Investors looking to generate $10,000 in annual income from Coca-Cola would need to invest over $362,000 to acquire 4,717 shares, underscoring the importance of its stable income stream for income-focused investors.
- Consistent Dividend Growth: Coca-Cola has raised its quarterly dividend for 64 consecutive years, demonstrating strong financial health and commitment to shareholders, with expectations that this trend will continue, bolstering investor confidence.
- Strong Financial Performance: In Q1 of fiscal 2026, the company reported $4 billion in net income on $12.5 billion in revenue, achieving a 32% margin, indicating Coca-Cola's capacity to continue returning capital to shareholders while maintaining stable product demand against macroeconomic fluctuations.
See More
Coca-Cola Dividend Investment Analysis
- Stable Dividend Income: Coca-Cola pays a quarterly dividend of $0.53, equating to an annual payout of $2.12, with a current stock price of $76.82, requiring an investment of over $362,000 to acquire 4,717 shares for generating $10,000 in annual income, highlighting its appeal as a steady income source.
- Dividend Yield Advantage: With a dividend yield of 2.76%, Coca-Cola significantly outperforms the S&P 500 index, indicating its competitive position in the market, and the company has raised its quarterly payout for 64 consecutive years, showcasing robust financial health and commitment to shareholder returns.
- Strong Financial Performance: In the first quarter of fiscal 2026, Coca-Cola reported a net income of $4 billion on revenues of $12.5 billion, resulting in a 32% margin, providing a solid foundation for ongoing dividend payments and demonstrating the company's ability to maintain stable operations amid economic fluctuations.
- Stable Market Demand: Given the minimal cyclicality of demand for Coca-Cola's products, the company's operations remain stable, allowing for continued dividend payments regardless of macroeconomic conditions, which enhances investor confidence in its long-term investment potential.
See More
Recommended High-Yield ETF: Schwab U.S. Dividend Equity ETF
- Income and Growth Balance: The Schwab U.S. Dividend Equity ETF boasts a dividend yield of 3.25% and has risen 19% year-to-date in 2026, delivering slightly lower growth than the S&P 500 while providing nearly three times the dividend income, indicating a strong balance between income and growth.
- Expense Ratio Advantage: With an expense ratio of just 0.06%, investors pay only $6 for every $10,000 invested, making it competitive among similar products and enhancing net returns for investors.
- Robust Portfolio Composition: The ETF tracks the Dow Jones U.S. Dividend 100 Index, comprising 100 stocks with a history of at least 10 years of dividend payments, ensuring financial health among constituents and reducing the risk of dividend cuts due to financial troubles, thus enhancing long-term investment safety.
- Diversified Holdings Structure: The top ten holdings account for about 43% of the ETF, with 18% in consumer defensive stocks, 15% in energy, and 18% in healthcare, providing a diversified allocation that helps maintain stability and risk resistance in the event of a market pullback.
See More
