not vested
‘Safe’ Stocks to Buy: The Coca-Cola Co (KO)
While a sharp loss from the stock market may crimp purchases of cars and vacations until confidence is restored, consumers are likely to keep in grabbing that 12 (or 20) ounces of cool, caffeinated goodness without a second thought.
In other words, The Coca-Cola Co. (NYSE:KO) has little to worry about in any conceivable environment.
Coca-Cola, however, also has something of an ace up its sleeve … a relationship with Keurig Green Mountain Inc (NASDAQ:GMCR).
Specifically, Coca-Cola carbonated drinks can be created using the Keurig Kold. The response to the Keurig Kold has been lukewarm so far (and even bordering on disappointing), and it’s not even on the market yet.
But that’s not the point.
When the market is falling apart, it’s all about perception. And the perception is, Coke has a money-saving solution in the works. That mental connection will further help keep KO afloat when other stocks are sinking in the meantime.
The clincher is the dividend. KO yields a healthy 3.2% payout, and cash payments become even more important when investors suspect capital appreciation is off the table.
Source: Investor Place