1 Reliable Dividend Growth Stock Down 13% to Buy Right Now

Company Overview - Coca-Cola is the world's largest beverage company, offering a wide range of products beyond its iconic cola, including bottled water, sports drinks, coffee, and tea [2] - The company has a massive distribution network and significant advertising power, allowing it to act as an industry consolidator by acquiring emerging brands [3] Market Position - Coca-Cola maintains a strong position in the beverage industry, with a 62-year streak of annual dividend increases, categorizing it as a Dividend King [4] - Over the past decade, shareholders have experienced approximately 5% annualized dividend growth [4] Current Challenges - The company is currently facing headwinds due to shifting consumer preferences towards healthier options and the impact of new weight loss drugs on the health and food industries [6] - Coca-Cola's stock has declined by 13% from its all-time high reached last year, leading to a dividend yield of 3.1%, which is average for the stock over the past five years [6][7] Valuation Metrics - The company's price-to-sales, price-to-earnings, and price-to-book value ratios are slightly below their five-year averages, indicating an attractive entry point for investors [7] Long-term Investment Perspective - Paying a fair price for a strong company like Coca-Cola is a reasonable strategy for income investors looking to hold long-term [8] - The company has a history of recovering from larger drawdowns and rewarding shareholders with rising dividends over time [8] Warren Buffett's Endorsement - Warren Buffett has held Coca-Cola stock for decades, emphasizing the importance of focusing on long-term growth rather than short-term price fluctuations [9] - The long-term growth potential of Coca-Cola remains strong, making it a valuable addition to an investment portfolio for those with a long-term perspective [10]