To paraphrase one of Coca-Cola‘s (KO +0.13%) old jingles, Coke is it these days, hitting a fresh high on Thursday. The beverage stock has risen 18% in 2026, roughly doubling the market’s year-to-date return. The good news is, it’s probably not too late to buy the king of pop.
There’s a lot to like when it comes to Coca-Cola, even at its all-time high. The seller of syrup and bottling rights is a money machine, offloading production and fulfillment costs to local distributors. Its trailing net margin of 27.8% is a 15-year high. Put another way, for every $100 it’s generating in revenue, $27.80 makes its way to the bottom line.
Image source: Getty Images.
A liquid situation
Coca-Cola stock is ripe for uncertain times. It’s been historically recession-resilient. A soft drink or one of its many beverages is a low-priced indulgence, even in lean times. In fact, Coca-Cola’s business has been so steady that the company has increased its dividend for 64 consecutive years.
Despite the stock’s strong performance, it still yields a respectable 2.6%. And it’s a fair bet that Coca-Cola will increase its payout again come February of next year.
Today’s Change
(0.13%) $0.10
Current Price
$82.64
Key Data Points
Market Cap
$355B
Day’s Range
$81.88 – $82.89
52wk Range
$65.35 – $84.04
Volume
698.7K
Avg Vol
15M
Gross Margin
61.82%
Dividend Yield
2.49%
If there’s one knock on the stock, it’s that it isn’t cheap. Coca-Cola trades at 25 times forward earnings, a premium to its historically modest top-line growth. But that’s fine. You can grab a cheap beverage, but that’s not going to happen for Coca-Cola stock itself.
If market volatility finds you warming up to low-beta stocks with all-weather businesses and more than six decades of increasing distributions, you know one stock that will quench your thirst. Coke is it.
Rick Munarriz 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.
