We recently published a list of the 10 Best Long Term Stocks to Buy According to Billionaires. In this article, we are going to take a look at where The Coca-Cola Company (NYSE:KO) stands against other best long term stocks.

Dividend-paying stocks have traditionally been seen as a solid foundation for investment portfolios, offering steady income and helping cushion the impact of market swings. However, despite these advantages, they occasionally trail the broader market—often overshadowed by more high-profile opportunities. Over the past couple of years, for example, dividend stocks underperformed as investors flocked to tech stocks. But following the recent market correction and the renewed pressure on tech shares due to tariffs introduced by Trump, dividend stocks have started to regain investor interest.

The Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has fallen by nearly 2% since the start of 2025, compared with a nearly 8% decline in the broader market. This trend suggests that dividends are regaining momentum, with a growing number of companies initiating dividend policies while existing payers are steadily boosting their payouts to attract investors. According to a report by S&P Global, 408 constituents of the broader market are projected to pay dividends in 2025. Of these, nearly 350 are expected to raise their dividends over the next four quarters, contributing to an estimated 6% year-over-year growth in total dividends. In the broader US market, aggregate dividend growth is forecasted at 4.6% for 2025. Given that S&P companies account for approximately 85% of all dividends paid in the US, the index serves as a strong indicator of overall dividend trends in the market.

The long-term value of dividend-paying stocks remains strong, particularly for investors seeking to reduce risk without giving up on growth potential. Ramona Persaud, portfolio manager of the Fidelity Equity-Income Fund and Fidelity Global Equity Income Fund, tends to favor high-quality companies that offer solid dividends and are reasonably priced. She pointed out that falling interest rates can create a favorable environment for dividend stocks, as their yields become more attractive compared to bonds. Persaud also noted that lower rates could help broaden market gains, unlike the recent trend where performance was largely driven by a few mega-cap growth names.

Her investment approach centers on companies with strong balance sheets, consistent cash flows, and high return potential. She also emphasized the importance of valuation—looking for stocks that are well-priced relative to their peers and historical levels—while seeking dividend yields that stand out in the current market. This combination of quality, value, and income has, according to her, helped the fund perform well in both rising and falling markets. She made the following comment about dividend stocks and their appeal:

“Ideally, I look for a stock that has a combination of these factors. I can’t always get all 3, so I look for a good balance of them. If I can get higher quality at a cheaper price, and the company pays a compelling dividend, that’s when a stock is really interesting to me.”

A row of factory workers assembling bottles of sparkling soft drinks on a conveyor belt.

Our Methodology

To compile this list, we screened for dividend stocks that have strong financials and solid dividend policies. From that group, we picked 10 companies that were most popular among billionaire investors, as per Insider Monkey’s billionaire database of Q4 2024. The stocks are ranked according to the number of billionaires having stakes in them.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

The Coca-Cola Company (NYSE:KO)

Number of Billionaire Holders: 16

The Coca-Cola Company (NYSE:KO) is one of the best long term dividend stocks because of its strong cash position and long dividend growth streak. The stock has the support of Warren Buffett, a widely followed figure among global investors. The company is behind some of the world’s most recognized beverages, offering not just its flagship Coca-Cola products but also a wide range of nearly 200 non-alcoholic, ready-to-drink brands. This lineup features familiar favorites such as Sprite, Fresca, Minute Maid, and Fairlife.

The Coca-Cola Company (NYSE:KO) reported strong results in FY24. The company’s revenue for the year came in at $91.8 billion, up from $91.4 billion in 2023. Its operating profit also rose to $12.8 billion, from $11.9 billion the year before. The company’s net income sat at $9.6 billion. Looking ahead to fiscal 2025, the company expects organic revenue to grow at a low single-digit rate, while core earnings per share are projected to rise by a mid-single-digit percentage, assuming constant currency conditions.

The Coca-Cola Company (NYSE:KO)’s cash generation also remained strong in FY24, with its operating cash flow coming in at $12.5 billion. The company plans to return $7.6 billion to shareholders via dividends. In February this year, KO achieved its 53rd consecutive annual dividend hike, which makes it a strong dividend payer for long term growth. It currently pays a quarterly dividend of $1.355 per share and has a dividend yield of 2.84%, as of April 15.

Overall, KO ranks 8th on our list of the best long term dividend stocks according to billionaires. While we acknowledge the potential of KO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than KO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.