Latest news with #DividendKing
Globe and Mail
2 days ago
- Business
- Globe and Mail
3 Top High-Yield Dividend Stocks I Can't Wait to Buy in June to Boost My Passive Income
I'd love to be able to retire early. It's not that I don't want to work; I don't want the stress of having to earn income to cover my living expenses. My desire to become financially independent drives my investment strategy. My goal is to grow my passive investment income so that it will eventually cover my basic living expenses. That way, I won't have to worry about working to pay the bills. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » I strive to make progress toward my passive income target each month by investing in additional cash-flowing investments. A top priority of mine is buying high-quality, high-yielding dividend stocks. Three that I can't wait to purchase more of this June are PepsiCo (NASDAQ: PEP), Rexford Industrial Realty (NYSE: REXR), and W.P. Carey (NYSE: WPC). Taking another sip of this satisfying dividend stock PepsiCo stock currently yields more than 4%, roughly three times more than the S&P 500 's less than 1.5% yield. The food and drink giant's yield has been steadily rising over the past year. That's due to the company's continued dividend increases and a more than 25% slump in its stock price caused by the potential impact of tariffs and concerns about changing consumer tastes. PepsiCo recently raised its payment by another 5%, extending its growth streak to 53 years in a row. That's kept it in the dividend nobility. It's a Dividend King, a company with 50 or more years of annual dividend increases. I love investing in high-yielding dividend stocks that grow their payouts, because they can help me reach my passive income goal faster. PepsiCo is in an excellent position to continue increasing its payout. The company expects its heavy capital investments (it reinvests more than 5% of its net revenue each year) to drive 4%-6% organic revenue growth and mid-to-high single-digit earnings-per-share growth. The company is also investing in inorganic growth to accelerate its transformation into a healthier food and beverage company. It recently bought low-calorie drink maker Poppi for nearly $1.7 billion. It also acquired Siete and Sabra to help better align its portfolio with consumers' changing tastes for more wellness-focused products. The company's growth investments put it in a solid position to continue increasing its shareholder payout. A short-term speed bump Rexford Industrial Realty's dividend yield is approaching 5% following a more than 30% slump in its stock price from its 52-week high. The industrial-focused real estate investment trust (REIT) has been under pressure due to rising interest rates and slowing demand for warehouse space in Southern California. The slowdown in Southern California drove anemic growth in the net operating income (NOI) generated by its same-property portfolio in the first quarter (0.7% increase). However, new investments (acquisitions and redevelopment projects) helped drive a nearly 7% increase in its funds from operations (FFO) per share in the period. While Rexford is facing some near-term growth headwinds, the longer-term outlook is much brighter. The REIT estimates that a combination of annual embedded rental rate increases, in-process repositioning and redevelopment projects, and rent growth as legacy leases expire and reprice to market rates will drive a 34% increase in its NOI over the next few years. That positions Rexford to continue increasing its dividend. The REIT has grown its payout at a 16% compound annual rate over the past five years, much faster than the sector average of 3%. A steady dividend grower W.P. Carey's dividend yield is getting closer to 6%. The diversified REIT's payout has risen due to its falling share price (nearly 5% decline) and steady dividend increases. It bumps up its payment a little bit each quarter. The REIT invests in single-tenant industrial, warehouse, retail, and other properties across North America and Europe secured by long-term net leases with built-in rent escalations that raise rents at either a fixed rate or one tied to inflation. Because of that, its portfolio provides it with very stable and steadily rising rental income. W.P. Carey routinely invests in additional income-producing net lease properties. It's targeting to invest $1 billion to $1.5 billion into new properties this year. Those growth drivers should enable it to steadily increase its payout. Ideal passive income stocks PepsiCo, Rexford Industrial Realty, and W.P. Carey fit my investment strategy. They pay high-yielding dividends that they aim to steadily increase and have strong businesses. Because of that, they can supply me with more income now and in the future, which should help me reach my early retirement goal even faster. Should you invest $1,000 in PepsiCo right now? Before you buy stock in PepsiCo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PepsiCo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Globe and Mail
2 days ago
- Business
- Globe and Mail
Why Does Warren Buffett Love Coca-Cola Stock? He Gave a Very Clear Answer Which Every Investor Should Understand.
Is Coca-Cola (NYSE: KO) Warren Buffett's favorite stock? It might be, and it's at least one of his favorites. He has praised it many times for a number of its features, and he's used it on several occasions to demonstrate what he thinks constitutes a great business. Most Buffett fans know that he has said that his favorite holding period is forever. But did you know that when he said that, he was talking about Coca-Cola stock? He's held true to that view, repeating several times that he would never sell Coca-Cola stock. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » He provided a clear and detailed explanation of what's so great about Coca-Cola at last month's annual shareholders' meeting, and every investor who wants to be successful should pay close attention to what he said. A stock to hold forever Berkshire Hathaway bought shares of Coca-Cola stock for the first time in 1988, making it his longest-held stock. In that year's shareholders' letter, Buffett wrote his famous quote: "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever." Buffett has called himself a "business-picker," not a "stock-picker." He tells investors to avoid short-term dips and gains and to focus on what makes a great business because a great business can withstand the test of time and will ultimately reward investors. As a Dividend King that's raised its dividend for 63 years consecutively through all kinds of conditions, Coca-Cola has certainly proven itself. A business that can last forever This year, Buffett gave a long commentary on how Coca-Cola's model makes it such a fabulous business: It's always better to make a lot of money without putting up anything than it is to make a lot of money by putting up a lot of money. And so a business that takes no capital to speak of, Coca-Cola, the finished product, which has gone through bottling companies and everything, that takes a lot of capital. But in terms of selling the syrup or the concentrate that goes to it, it doesn't take a lot of capital. So one is a fabulous business and one is a -- it depends where it is and everything like that. Coca-Cola is popular every place. But some places -- I mean, if you're in the bottling business, it costs real money. You have real trucks out there and you have all kinds of machinery and you have capital expenditures coming up. And we've got businesses that take very little capital that make really high returns on capital. Investors often think of Buffett as a value investor, but he's really the ultimate contrarian investor. If you take a look at the Berkshire Hathaway portfolio, it owns few so-called hot stocks and many stocks investors never talk about, such as Moody's and Chubb. These are cash-strong businesses with products that are always in demand, companies that are well-established and stable, and companies that don't need to put in a lot money to make a lot of money. Buffett talks about these qualities far more often than telling investors to get a good deal, recommending them to buy great companies at fair prices instead of vice versa. What's a great business? When explaining what makes a great business, Buffett has often focused on a company's return on capital. Being able to make a lot of money without having to invest a lot of money creates high profits and generates a robust, cash-generating business cycle. For Coca-Cola, that's tied into its brand name, which is such an important part of its moat, or competitive advantage. Coca-Cola is not in the bottling business; it makes syrups and concentrates that it sells to its bottling partners, a much less capital-intensive business. The bottling partners add water and other components to create the finished product. Most of its end-user products are made locally through this system. It sells its concentrates to local business partners who make the final products on-site and know people love Coke's beverages. Some final products are the cans and bottles sold in supermarkets and the like, and some final products are sold as drinks in dining establishments. The company has more than 200 bottling partners and calls this network the Coca-Cola system. Even more important today CEO James Quincey has noted that because of the company's local production, Coke has less exposure to the tariff situation. The tariff program keeps changing, creating volatility for U.S. companies that rely on imports. But Coca-Cola has a concentrate facility in the U.S., and because it's such a large company with many parts -- it has 950 production facilities worldwide -- it has leverage with suppliers and the ability to change things to its benefit. This is the kind of resilience that Buffett prizes, and it comes from being agile instead of bogged down with capital-heavy assets. This is what Buffett means when he talks about great businesses, and these are the kinds of businesses that can last and create long-term shareholder value. Should you invest $1,000 in Coca-Cola right now? Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
7 days ago
- Business
- Yahoo
Down 30% in 2025, Is This Dividend King a No-Brainer Stock to Buy Now?
Target is on track for another year of lower earnings. Inventory levels are inflated because Target overestimated consumer demand. Target has to deliver better results or the stock could keep falling as investors lose patience. 10 stocks we like better than Target › Target (NYSE: TGT) is down 30.2% year-to-date at the time of this writing. The sell-off is brutal, considering shares of the retail giant fell 9.3% between the start of 2023 and the end of 2024 -- a two-year period in which the S&P 500 (SNPINDEX: ^GSPC) gained 53.2%. But value investors looking at Target's 53 consecutive years of dividend raises and 4.7% yield may be wondering if the Dividend King stock is worth buying on the dip. Let's dive into Target's latest earnings report to see if management has a clear direction for turning the company around and if Target stock is worth buying now. Target's latest earnings (first-quarter fiscal 2025) weren't great. But its full-year forecast is an even bigger concern, as adjusted earnings per share (EPS) are expected to be just $7 to $9. Unless results come in at the high end of that range, Target will likely notch yet another year of negative earnings and net sales growth. Target's weak results mainly stem from low foot traffic and inventory mismanagement. One of the greatest challenges for retailers is predicting buyer behavior trends. It's hard enough to know what products customers will buy, but it's even more difficult to forecast how much they will want. Over-ordering sets the stage for discounts and lower profitability, whereas under-ordering can leave sales on the table. Since 96% of Target's net sales volume is fulfilled by its stores, Target has to manage inventory levels to account for in-store purchases and online orders. Digital sales have been a bright spot for Target, with comparable digital sales up 4.7% and average click-to-deliver speeds nearly 20% faster than last year. More than 70% of all first-quarter digital orders were fulfilled within one day. These numbers sound great on paper, but supporting a growing digital sales funnel comes with costs and pressures on inventory management. In its latest quarter, inventory jumped 11% compared to first-quarter fiscal 2024 due to lower-than-expected sales -- which directly impacted Target's bottom line. On its first-quarter fiscal 2025 earnings call. Target shared strategies for turning the business around, including offering more than 10,000 new items starting at just $1, leaning into holiday seasons (which have historically been Target's bread and butter), and the formation of a new enterprise called Acceleration Office. Acceleration Office will focus on enabling technology, artificial intelligence, and other tools to make Target more efficient, cost-effective, and agile. A key part of the project is modernizing and streamlining inventory management, which could help Target save a significant amount of money and better forecast buyer behavior trends. It sounds great on paper, but investors have heard bold plans from Target in the past that didn't translate to bottom-line results. On Target's fourth-quarter fiscal 2024 earnings call from March, Target said it would tap into the experience side of the business to boost foot traffic and restore consumer interest. The plan was to harken back to the "Tarzhay" spirit -- a somewhat silly term used to add fun and flair to an otherwise routine shopping experience. Target recognizes that the experience side of its business is paramount for driving growth. Target had a great deal of success with e-commerce and curbside pickup during the pandemic. But post-pandemic, Target has struggled to keep pace with peers like Walmart (NYSE: WMT) and Amazon, which can beat Target on price. Buying goods online expedites the sales process, but it also takes out factors like in-store experiences. In other words, it plays to Walmart's strengths in value, supply chain, and inventory management and less to Target's strengths in getting buyers in the door and having an enjoyable shopping experience. Factors such as inflation and economic uncertainty have impacted buyer behavior. Cost-conscious buyers may be less enthusiastic about the in-store shopping experience and more focused on value. So, while Target's Acceleration Office and other efforts could lead to improvements over time, it would be a mistake to assume that Target has what it takes to turn the corner anytime soon. The company continues to experience negative growth and relies on the in-store experience during a time when price is paramount. Target's guidance and management commentary on the earnings call suggests that Target's turnaround will take time, and its results could remain pressured over at least the short term. When a company comes right out and admits results are bad and not getting better anytime soon, it can pummel a stock price. But ripping off the proverbial bandage also resets expectations. In this case, Target has set the bar really low. And the valuation reflects that, as Target's stock price of just $94.29 per share and $7 to $9 in adjusted fiscal 2025 EPS suggest a price-to-earnings (P/E) ratio based on that guidance range of 10.5 to 13.5. That's dirt cheap for a reliable dividend stock like Target. For context, Walmart has a forward P/E ratio of 36.9. There are several paths to getting Target back on track, from better cost and inventory management to growing the online business, getting customers shopping in-store through successful partnerships and promotions, and expanding the Target Circle loyalty program. Investors shouldn't expect Target to make progress on all these efforts at once, and new challenges could always emerge that throw a wrench in Target's turnaround. But at least investors know what is not going well with the company and what needs to change. In sum, Target is an excellent buy for value investors looking to generate passive income and willing to ride out what will likely be a prolonged, volatile period. However, some investors may prefer to wait for Target to show measurable progress on its turnaround before buying the stock. Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Target, and Walmart. The Motley Fool has a disclosure policy. Down 30% in 2025, Is This Dividend King a No-Brainer Stock to Buy Now? was originally published by The Motley Fool
Globe and Mail
7 days ago
- Business
- Globe and Mail
Down 30% in 2025, Is This Dividend King a No-Brainer Stock to Buy Now?
Target(NYSE: TGT) is down 30.2% year-to-date at the time of this writing. The sell-off is brutal, considering shares of the retail giant fell 9.3% between the start of 2023 and the end of 2024 -- a two-year period in which the S&P 500(SNPINDEX: ^GSPC) gained 53.2%. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » But value investors looking at Target's 53 consecutive years of dividend raises and 4.7% yield may be wondering if the Dividend King stock is worth buying on the dip. Let's dive into Target's latest earnings report to see if management has a clear direction for turning the company around and if Target stock is worth buying now. Target's results continue to be unimpressive Target's latest earnings (first-quarter fiscal 2025) weren't great. But its full-year forecast is an even bigger concern, as adjusted earnings per share (EPS) are expected to be just $7 to $9. Unless results come in at the high end of that range, Target will likely notch yet another year of negative earnings and net sales growth. Target's weak results mainly stem from low foot traffic and inventory mismanagement. One of the greatest challenges for retailers is predicting buyer behavior trends. It's hard enough to know what products customers will buy, but it's even more difficult to forecast how much they will want. Over-ordering sets the stage for discounts and lower profitability, whereas under-ordering can leave sales on the table. Since 96% of Target's net sales volume is fulfilled by its stores, Target has to manage inventory levels to account for in-store purchases and online orders. Digital sales have been a bright spot for Target, with comparable digital sales up 4.7% and average click-to-deliver speeds nearly 20% faster than last year. More than 70% of all first-quarter digital orders were fulfilled within one day. These numbers sound great on paper, but supporting a growing digital sales funnel comes with costs and pressures on inventory management. In its latest quarter, inventory jumped 11% compared to first-quarter fiscal 2024 due to lower-than-expected sales -- which directly impacted Target's bottom line. Target's plan to turn the corner On its first-quarter fiscal 2025 earnings call. Target shared strategies for turning the business around, including offering more than 10,000 new items starting at just $1, leaning into holiday seasons (which have historically been Target's bread and butter), and the formation of a new enterprise called Acceleration Office. Acceleration Office will focus on enabling technology, artificial intelligence, and other tools to make Target more efficient, cost-effective, and agile. A key part of the project is modernizing and streamlining inventory management, which could help Target save a significant amount of money and better forecast buyer behavior trends. It sounds great on paper, but investors have heard bold plans from Target in the past that didn't translate to bottom-line results. On Target's fourth-quarter fiscal 2024 earnings call from March, Target said it would tap into the experience side of the business to boost foot traffic and restore consumer interest. The plan was to harken back to the "Tarzhay" spirit -- a somewhat silly term used to add fun and flair to an otherwise routine shopping experience. Target recognizes that the experience side of its business is paramount for driving growth. Target had a great deal of success with e-commerce and curbside pickup during the pandemic. But post-pandemic, Target has struggled to keep pace with peers like Walmart(NYSE: WMT) and Amazon, which can beat Target on price. Buying goods online expedites the sales process, but it also takes out factors like in-store experiences. In other words, it plays to Walmart's strengths in value, supply chain, and inventory management and less to Target's strengths in getting buyers in the door and having an enjoyable shopping experience. Factors such as inflation and economic uncertainty have impacted buyer behavior. Cost-conscious buyers may be less enthusiastic about the in-store shopping experience and more focused on value. So, while Target's Acceleration Office and other efforts could lead to improvements over time, it would be a mistake to assume that Target has what it takes to turn the corner anytime soon. The company continues to experience negative growth and relies on the in-store experience during a time when price is paramount. The bar is low for Target Target's guidance and management commentary on the earnings call suggests that Target's turnaround will take time, and its results could remain pressured over at least the short term. When a company comes right out and admits results are bad and not getting better anytime soon, it can pummel a stock price. But ripping off the proverbial bandage also resets expectations. In this case, Target has set the bar really low. And the valuation reflects that, as Target's stock price of just $94.29 per share and $7 to $9 in adjusted fiscal 2025 EPS suggest a price-to-earnings (P/E) ratio based on that guidance range of 10.5 to 13.5. That's dirt cheap for a reliable dividend stock like Target. For context, Walmart has a forward P/E ratio of 36.9. There are several paths to getting Target back on track, from better cost and inventory management to growing the online business, getting customers shopping in-store through successful partnerships and promotions, and expanding the Target Circle loyalty program. Investors shouldn't expect Target to make progress on all these efforts at once, and new challenges could always emerge that throw a wrench in Target's turnaround. But at least investors know what is not going well with the company and what needs to change. In sum, Target is an excellent buy for value investors looking to generate passive income and willing to ride out what will likely be a prolonged, volatile period. However, some investors may prefer to wait for Target to show measurable progress on its turnaround before buying the stock. Should you invest $1,000 in Target right now? Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider whenNetflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,you'd have $639,271!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you'd have $804,688!* Now, it's worth notingStock Advisor's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you joinStock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Target, and Walmart. The Motley Fool has a disclosure policy.
Yahoo
25-05-2025
- Business
- Yahoo
This Dividend King Is Crushing the Market. Here's Why It Offers Years of Passive Income Growth.
Investors see Coca-Cola as a safe stock to own when there's market and macroeconomic uncertainty. The company has an efficient global operating system that's also localized and has low exposure to tariffs. Coca-Cola is a Dividend King with an incredible 63-year track record of payout hikes. 10 stocks we like better than Coca-Cola › Many of today's top growth stocks are trailing the market this year as investors worry about tariffs. Even though the U.S. and China earlier this month announced a deal that postponed the larger part of President Donald Trump's 145% tariffs on Chinese imports (and China's reciprocal 125% tariffs on U.S. goods) for 90 days, the tariff overhang remains. That deal left most Chinese imports into the U.S. facing a still-hefty 30% tariff, and imports from most other nations are still under their new tariff regimes. Many of those countries have responded with tariffs of their own on U.S. goods. By now, many U.S. companies have offered their initial outlooks for the year ahead: Their views range from not expecting any impact from this trade war to acknowledging that they will have to raise their prices to reflect the costs of those tariffs, but there's uncertainty all over. These are the kinds of volatile conditions in which stocks like Coca-Cola (NYSE: KO) can soar. The beverage giant is a solid, dependable winner that thrives in many circumstances. Plus, it's a Dividend King, reliable for providing passive income growth. Let's see why it could be an excellent candidate for your portfolio. With $47 billion in trailing 12-month sales, Coca-Cola is the largest beverage company in the world. But you might not realize that it was struggling for a really long time before CEO James Quincey came on board in 2018 and helped the company get its act together. Lackluster growth started to speed up before the pandemic hit, and the company restructured amid global lockdowns, emerging as leaner and more efficient. It now owns about 200 global brands underpinned by the Coca-Cola label, its core business, which is reliable for high sales. According to Statista, Coca-Cola and one of its many other owned brands, Sprite, have the top two spots in U.S. brand awareness among soft drinks. There are several reasons investors flock to Coca-Cola when there's uncertainty. People always need to drink, and Coke's beverages are cheap enough for fans to keep buying them even when budgets are tight. It has also experimented with container size and packaging to make sure that servings of its drinks are still available at affordable prices despite inflation and tariff-driven price hikes. During the first-quarter earnings call, Quincey explained how the company is well-built to manage through increased tariffs. Most of its beverage production occurs in the markets where those beverages are bought and consumed, so a large percentage of its business won't be exposed to higher import taxes at all. The soft drink concentrates it uses in U.S. production are made in the U.S., even though it has overseas facilities for other regions. Price increases on products that it will face due to tariffs, such as orange juice and aluminum, are expected to be minimal relative to the company's cost structure and the size of the business. In those cases, Quincey said the company has many levers it can pull to offset some of the impact, and it has many financial hedging positions in place to deal with changing foreign currency exchange rates because it operates in so many countries. The strong brand, perhaps unrivaled in beverages, together with the robust and efficient operating model create a company that's reliable in good times and downturns alike. In good times, it's taken for granted. In challenging times, investors have confidence in Coca-Cola. The dividend is another reason Coca-Cola is considered a safer stock by so many investors. The company is a Dividend King with a 63-year streak of annual payout hikes that it has maintained through all kinds of economies and markets. That's no small feat. Only a handful of elite companies have equaled or exceeded that streak. There's no way to know what will happen in the future, but the company has been tested many times, such as at the beginning of the pandemic, when it reported double-digit sales declines. It still raised the dividend, even though the payout ratio surpassed 100%. In that light, it's understandable why people view it as being a reliable source of growing passive income during almost any conditions. These are good reasons for investors to love dividend stocks, and Dividend Kings in particular. But Coca-Cola also offers a relatively high yield -- 2.8% at today's price. It's usually higher than that, but since Coca-Cola stock is flying this year, up 14% vs. a flat S&P 500 -- which, for comparison, is yielding about 1.3% -- it's lower than usual. Coca-Cola can be expected to keep distributing its profits to shareholders forever, and raising its dividend annually for the foreseeable future. It won't be a top growth stock, but it can provide tremendous value over the long term to a well-diversified portfolio. Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Jennifer Saibil has 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. This Dividend King Is Crushing the Market. Here's Why It Offers Years of Passive Income Growth. was originally published by The Motley Fool
