This Dividend King Is Crushing the Market. Here's Why It Offers Years of Passive Income Growth.

Core Viewpoint - Many top growth stocks are underperforming due to concerns over tariffs, despite a temporary deal between the U.S. and China that postponed some tariffs [1][2] Company Overview - Coca-Cola is the largest beverage company globally, with $47 billion in trailing 12-month sales, and has shown significant improvement since CEO James Quincey took over in 2018 [4] - The company has restructured to become leaner and more efficient, owning about 200 global brands, with Coca-Cola and Sprite leading in U.S. brand awareness among soft drinks [4] Market Position and Resilience - Coca-Cola's products are affordable, making them attractive to consumers even during economic downturns, and the company has adapted its packaging to maintain affordability despite inflation and tariffs [6] - The majority of Coca-Cola's beverage production occurs in the markets where they are sold, minimizing exposure to higher import taxes [7] Financial Management - Price increases due to tariffs on certain products are expected to be minimal relative to Coca-Cola's overall cost structure, and the company has strategies in place to mitigate impacts [7] - Coca-Cola has established financial hedging positions to manage foreign currency exchange rate fluctuations, given its global operations [7] Dividend Reliability - Coca-Cola is recognized as a Dividend King, having increased its annual dividend for 63 consecutive years, demonstrating resilience through various economic conditions [9] - The current dividend yield is 2.8%, which is lower than usual due to a 14% increase in stock price this year, compared to a flat S&P 500 yielding about 1.3% [10] Long-term Value - Coca-Cola is expected to continue distributing profits to shareholders and raising dividends annually, providing long-term value to a diversified portfolio, even if it is not a top growth stock [11]