Coca-cola (NYSE: KO) has crushed stocks overall in 2026, even amid concerns about geopolitical tensions, inflation and a possible recession. The company’s shares are up 13% this year, compared to S&P 500 return of only 5%, and the stock is not that far from its all-time high. Is Coca-Cola worth investing in at current levels? Let’s find out.
A great choice for the current environment.
Coca-Cola shares rose after its most recent quarterly update. For the first quarter, Coca-Cola’s revenue increased 12% year over year (a strong performance for the beverage giant) to $12.5 billion, thanks to a 3% increase in unit case volume. Coca-Cola’s adjusted earnings per share grew 18% year over year to $0.86. The company’s free cash flow was $1.8 billion, compared to negative $5.5 billion in the same period the previous fiscal year, and Coca-Cola also increased its market share during the period.
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Some might be surprised by Coca-Cola’s strong performance, given the significant economic uncertainty we face, marked by higher prices, among other things. However, Coca-Cola has proven time and time again that it has an incredibly resilient business. As a leader in consumer staples, the company tends to perform relatively well even in difficult times. Plus, your brand attracts customers effortlessly, a significant advantage. We can also point to the company’s extensive product portfolio across multiple beverage categories. These strengths highlight why Coca-Cola is an excellent long-term bet.
It doesn’t have the kind of growth potential that leading technology companies have. But Coca-Cola can provide some stability to a well-diversified portfolio. Sure, the company faces some long-term risks, such as stiff competition (including from new market entrants), changing consumer preferences, and stricter regulations. However, Coca-Cola has dealt with all of this before and successfully.
The company constantly launches new products to keep up with evolving consumer choices (including healthier or cheaper options to appeal to health-conscious or price-sensitive customers). Coca-Cola can also face competition, whether from established players in the industry or newer companies, as evidenced by its growing market share over the period. Its wide moat, which stems from its brand and helps it control shelf space at larger stores, is another important asset that can help it withstand potential obstacles. So we can point out that Coca-Cola is a fantastic dividend stock.