Don’t Dump These Downtrodden Dividend Darlings

An earnings miss isn't the end of the world

      View All  

Coca-Cola

CocaColaLogo Don't Dump These Downtrodden Dividend DarlingsIt was tough quarter for InvestorPlace Dependable Dividend Coca-Cola (KO), as the iconic beverage maker reported a 3% revenue slip in the second quarter (ended June 30) compared to the previous year, with profit lower by 4% at 59 cents per share, under analyst estimates of 63 cents per share over the same period.  Coca-Cola execs partially blamed the weather: Cool, wet domestic temperatures and flooding in Europe led to weaker sales in both markets.  KO stock was clipped nearly 2% after the July 15 release.

But none of that will effect KO’s stellar dividend profile: a 51-consecutive-year streak built on the “wide-moat” business model that has Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) invested to the tune of 400,000 shares. And why not? Despite the drop in income compared to last year’s quarter, KO managed to squeeze out more than $2 billion in cash flow for the quarter, nicely ahead of its $1.1 billion payout, while still sitting on over $9 billion in cash.

KO may get buffeted by lagging beverage sales, but its still a sound company on solid ground, with a one of the most recognizable and trusted brands on the planet. Hang in there and you’ll by glad you did when they make it 52 years in a row.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/5-dividend-stocks-to-soothe-the-earnings-hurt-msft-ko-mcd-shw/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.