2 Beverage Stocks to Quench Your Thirst This Fall

Market volatility has been widespread this year amid rising consumer prices and consecutive interest rate hikes by the Fed. The CBOE Volatility Index has gained 40.8% year-to-date. However…

demand for beverages remains robust. Moreover, with rising health awareness, organic beverages are becoming more popular.

The beverage segment’s revenue is projected to reach $208.10 billion in 2022. Furthermore, according to Fortune Business Insights, the global functional food and beverage market size is expected to grow at a CAGR of 9.5% until 2028. The industry is gaining traction due to the steadily growing presence of startups specializing in nutrient-enriched drinks.

Given the backdrop, investors might consider adding fundamentally strong beverage stocks The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) to their portfolios.

The Coca-Cola Company (KO)

KO, a beverage company, manufactures, markets, and sells various non-alcoholic beverages worldwide. The company provides sparkling soft drinks, flavored and enhanced water, sports drinks, juice, dairy, plant-based beverages, tea and coffee, and energy drinks.

On September 29, 2022, KO and Molson Coors Beverage Company expanded their exclusive agreement to develop and commercialize Topo Chico Spirited, a line of spirit-based, ready-to-drink cocktails inspired by the taste of some of America’s most loved tequila and vodka-based beverages. This is expected to be strategically beneficial for KO.

KO has paid dividends for 59 consecutive years. Its dividend payouts have increased at a 3.6% CAGR over the past five years. Its current dividend yield is 2.9%, and its four-year average yield is 3.08%.

KO’s net operating revenue came in at $11.06 billion for the third quarter that ended September 30, 2022, up 10.2% year-over-year. Its gross profit increased 7.1% year-over-year to $6.50 billion. Also, its EPS increased 14% year-over-year to $0.65.


KO’s revenue is estimated to increase 10.5% year-over-year to $42.7 billion in 2022. Its EPS is estimated to grow 6.9% year-over-year to $2.48 in 2022. It has surpassed EPS estimates in all four trailing quarters. Over the past year…

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