Can Coca-Cola Stock Help Keep Your Money Safe During a Market Crash?

Core Viewpoint - The current stock market turmoil has led to a decline of approximately 9% in the S&P 500 since the beginning of the year, prompting investors, particularly retirees, to focus on capital preservation while considering investments like Coca-Cola, which is known for its robust performance and resilience [1] Group 1: Coca-Cola's Resilience - Coca-Cola operates globally, providing flexibility to adapt to challenges such as tariffs on imports, allowing the company to use alternative packaging materials to mitigate impacts [2] - The company reported earnings of $10.6 billion on sales of $47.1 billion last year, resulting in a profit margin of nearly 23%, positioning it well to maintain solid earnings despite potential cost increases [3] - Historically, Coca-Cola has demonstrated low volatility with an average beta of 0.45, indicating it does not closely follow market fluctuations, making it attractive for risk-averse investors [6] Group 2: Performance During Market Downturns - During the last market crash in 2022, Coca-Cola stock provided total returns exceeding 10%, outperforming the S&P 500, showcasing its stability as an investment during turbulent times [4] - The stock is considered a good option for risk-averse investors seeking stable dividends, with a current yield of 2.9%, offering a reliable source of recurring income [7] Group 3: Growth Prospects - While Coca-Cola's growth has been modest, with earnings increasing by only 9% from 2022 to 2024, it remains a solid investment for those prioritizing low risk and stable dividends [8]