Ignore This Dividend Giant & You Might Kick Yourself Later
Despite being a household name to consumers worldwide,
Coca-Cola Co (NYSE:KO) seems to be a forgotten ticker in the stock market.
Sure, KO stock did enjoy a nice rally following the market crash in March 2020,
but its performance hasn’t exactly been stellar.
To give you an idea, Coca-Cola stock reached over $60.00 per
share in February 2020—right before the pandemic-induced sell-off. As of this
writing, it trades at $56.84 apiece.
In other words, while the overall market has soared to new
heights, the share price of this multinational beverage company is yet to climb
back to its pre-pandemic peak.
In fact, the theme over the past year and a half seems to
have been that market participants prefer growth stocks to dividend stocks.
Coca-Cola Co is the quintessential dividend stock, so while the fast-growing
tech names were shooting to the moon, KO stock was left on Earth.
It’s easy to be a trend-follower and rush toward the tech
sector. But if you’re an income investor, Coca-Cola stock remains one of the
most solid dividend plays in the market. And that means its underperformance
could actually represent an opportunity.
You see, income investors want to collect sizable, reliable
dividends. At the time of this writing, KO stock yields three percent, which
may not seem like much, as there are plenty of higher yielders.
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