The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, caffeine free Diet Coke, Cherry Coke, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Dasani, dogadan, FUZE TEA, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, and Minute Maid Pulpy brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

Coca-Cola remains a high-quality defensive business, but its current valuation already reflects its strengths to a noticeable extent. On a multiples basis, the company looks expensive: P/E of 26.6, P/S of 7.6, P/B of 9.9, and P/FCF of 26.7 are all significantly above the industry median, which limits the potential for further upside without an acceleration in growth. At the same time, the trend in valuation ratios generally weakens the case for a downward re-rating: P/E, P/S, P/B, and P/FCF have mostly increased in recent periods, meaning the market is paying more and more for the same financial results. KO’s key strength is very high profitability: ROE of 40.4%, ROA of 13.5%, ROI of 18.9%, with a net profit margin of 28.6% and an operating margin of 29.6% well above industry benchmarks. This confirms the brand’s strong pricing power and its ability to generate profits even in a mature business. Revenue, EBITDA, operating profit, and net profit have generally grown year over year, supporting the fundamental stability of the valuation. The balance sheet also looks manageable: debt-to-equity has declined from 1.49 to 0.97, and long-term debt is decreasing, which reduces financial risk. Liquidity is acceptable, although the current ratio of 1.30 does not provide a large margin of safety, and the quick ratio of 1.12 is only moderately comfortable. Dividend yield in the latest period looks weaker than the historical level, so the dividend factor does not currently add a strong argument for revaluation. Overall, the fundamentals point to a mature, profitable, and resilient company, but one that is already richly valued by the market. For an investor, this means it is more of a high-quality defensive asset than an undervalued opportunity. Therefore, a moderate conservative downward adjustment to the forecast is appropriate to account for the expensive multiples and limited room for re-rating.

Coca-Cola Company (The)

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Рынок на стороне быков.

Weak index, significantly up. The market is on the bulls' side.

Средний индекс, значительно вырос. Приток средств в лонги резко увеличился и находится на высоком уровне.

Medium index, significantly up. The inflow of funds into longs has increased sharply and is at a high level.

KO demonstrates strong profitability and sustained profit growth, but trades at a premium on all key valuation multiples, which limits upside potential.

For Immediate Release
Chicago, IL – September 14, 2026 – Today, Zacks Investment Ideas features Johnson & Johnson JNJ, Coca-Cola KO and Exxon Mobil XOM
Top 3 Dividend Aristocrats to Own Near All-Time Highs
When considering dividend-paying stocks, those with a history of increasing payouts are prime candidates, reflecting their commitment to increasingly rewarding shareholders.
And when it comes to a consistent history of increased payouts, look no further than the Dividend Aristocrats. Several members of the club, including Johnson & Johnson, Coca-Cola and Exxon Mobil, are trading near all-time highs, reflecting bullish momentum driven by strong results or favorable operating conditions.
Johnson & Johnson Lifts Outlook
Johnson & Johnson’s biggest strength is its diversified business model, with more than 275 subsidiaries that provide a strong shield against economic fluctuations.
Strong operational performance led the company to increase both its current fiscal year sales and adjusted EPS guidance in its latest quarterly release, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history.
JNJ is not only a Dividend Aristocrat but also a Dividend King, a title held by companies with at least 50 years of consecutive annual dividend increases, owing to its ability to consistently reward shareholders throughout its long-standing history. Shares yield 2.0% annually, nearly double the current yield of the S&P 500.
JNJ is an extremely defensive stock given its ability to generate sales no matter the current backdrop, making it a top-tier option for those seeking a layer of defense paired with predictable dividend payouts. It has also been an excellent earnings performer, posting a double-beat relative to our consensus expectations in nine consecutive quarters.
Coca-Cola Capitalizes on Shifting Consumer Preferences
Coca-Cola’s brand equity, marketing, research, and innovation support a market share of more than 40% in the non-alcoholic beverage industry, with a product portfolio across a broad range of consumer needs and drinking occasions.
Coca-Cola’s latest results reflected nice strength, with Q2 sales climbing 7% YoY to $13.4 billion and EPS jumping 11% to $0.97. Importantly, the company has capitalized well on consumers’ shift and wants toward less-sugary options, reflected in 16% YoY volume growth in Coca-Cola Zero Sugar in the above-mentioned period.
Like JNJ, Coca-Cola is also a Dividend King, known for its consistent, increasing dividend payouts throughout time. Shares currently yield a solid 2.4% annually, with it also sporting a 5% five-year annualized dividend growth rate.
The earnings growth outlook for KO remains solid, with Zacks Consensus estimates suggesting 9.7% earnings growth in 2026 and another 7% in FY27. The growth here is quite strong given its overall mature nature, showcasing its ability to generate higher profits on the back of capitalizing on shifting preferences.
ExxonMobil Benefits Greatly From Higher Oil
ExxonMobil shares have delivered a strong performance in 2026 on the back of higher oil prices stemming from geopolitical concerns. Higher oil prices boost cash generation, which is why it remains a favorite among many income-focused investors.
Free cash flow of $17.5 billion in its latest quarter grew by a triple-digit 600% YoY, reflecting the highly favorable operating environment it’s been sitting in for the bulk of 2026. Shares currently yield 2.5% annually, with XOM carrying a 3.9% five-year annualized dividend growth rate.
That said, oil prices are undoubtedly volatile as we’ve learned this decade, but improved operational efficiencies mean it stays heavily cash-generative even in lower-price environments. Shares currently yield 2.5% annually, and XOM also provides strong shareholder returns through share buybacks.
Bottom Line
Consistently growing dividend payouts reflect rock-solid business fundamentals, with companies like these all showing their ability to return value to shareholders across different economic environments. Their strong cash-generating abilities also provide a higher level of defense during wider market volatility, offering another advantage for investors seeking a level of stability whenever sentiment shifts.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Johnson & Johnson, Coca-Cola and Exxon Mobil

Key Points
Shares of Tilray Brands have fallen roughly 50% so far in 2026.
The company's business posted record revenues and gross profit in fiscal 2026.
Tilray Brands (NASDAQ: TLRY) started out as a marijuana company. When it first came public, investors were enamored of pot stocks and the shares rose dramatically. But the marijuana story didn't live up to investors' elevated expectations, and Tilray's stock, along with the rest of the marijuana sector, plunged. Today, Tilray is taking a different approach, and it is starting to show positive results. But investors appear unwilling to give the stock the benefit of the doubt. Here's what's going on.
Is Tilray Brands trying to become a consumer staples company?
The big story with Tilray Brands right now really isn't marijuana. What investors really need to pay attention to is management's efforts to add other products to the portfolio, including alcoholic beverages and CBD-infused items. Moreover, Tilray has been focusing heavily on its brands as it seeks to transition into "a global lifestyle and consumer packaged goods company leading at the nexus of the beverage, cannabis, and wellness industries."
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
This is a major corporate overhaul, with Tilray effectively seeking to compete with consumer staples companies. It is a highly competitive industry where scale can be an important differentiator. That's an issue, since Tilray's market cap is a tiny $600 million. Distribution, marketing, research and development all involve material costs. It can be difficult to differentiate a company if its revenues are a rounding error relative to larger peers. And that's very much the case here, considering that Coca-Cola (NYSE: KO) generated $13.4 billion in sales in the second quarter of 2026.
That puts Tilray's record fiscal 2026 revenues of $915 million into perspective. Coca-Cola made over 13x that in just a single quarter. While it is true that comparing Tilray to one of the world's largest consumer-staples companies probably isn't fair, it does help to show just how small Tilray really is as a business.
Tilray is achieving solid success, but there's still more to do
The next big issue is that Tilray isn't profitable. Despite record revenues, the company still lost $1.09 per share in fiscal 2026. That was a vast improvement over the $24.56-per-share loss in fiscal 2025, but a tiny, money-losing company in the middle of a business overhaul isn't the type of stock most investors should buy. Tilray is only appropriate for risk takers.
That said, it has done a very good job of diversifying its business beyond marijuana. At this point, it also has a significant business in the craft-brew niche, which it recently expanded through the acquisition of BrewDog. Moreover, revenues increased across all its business segments in fiscal 2026, suggesting the company is executing fairly well. Management just has to find a way to turn that success into profits.
From a big-picture perspective, Tilray's diversification effort and focus on becoming a consumer-staples brand manager are probably good choices. However, given the history of the marijuana industry and the company's ongoing losses, investors aren't willing to afford the company the benefit of the doubt as it looks to turn itself into a profitable business. That's entirely understandable.
Tilray: Record revenues aren't enough
At the end of the day, Tilray needs to prove it can be a sustainably profitable business. Record revenues are moving the company in the right direction, as is its effort to diversify. However, until earnings turn positive, most investors are unlikely to buy Tilray stock. So, for now, Tilray remains a business that only the most aggressive investors should buy. But given the changes it is making, it might still be one you want to keep on your watch list, even if you aren't willing to own it right now.
Should you buy stock in Tilray Brands right now?
Before you buy stock in Tilray Brands, consider this:
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Tilray Trades Below $5 With Record Fiscal Revenue on the Books. What's Holding the Stock Back?

Key Points
International expansion has helped fuel rising revenues.
Inflation and increased competition could weigh on growth.
The stock's valuation may discourage buyers.
Monster Beverage (NASDAQ: MNST) logged significant gains over the last 12 months. The stock rose by about 35% over that time frame amid revenue increases and growing popularity internationally.
Unfortunately, it faces headwinds over the next year that might compromise its growth trajectory. Given that, consumer staples stocks are unlikely to outperform the market over the next year. Here's why.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The state of Monster Beverage stock
Indeed, Monster Beverage has benefited from a solid performance in recent quarters. In the first six months of 2026, revenue of almost $4.9 billion increased by 23% year over year. Also, its net income for the same time frame was close to $1.2 billion, growing by approximately the same yearly percentage as revenue.
Monster has benefited from strong pricing power and a relatively asset-light business model, leveraging Coca-Cola's distribution infrastructure. Also, consumer demand for energy drinks has been strong, particularly outside of the U.S. That approach has helped Monster generate enough cash for share repurchases, and $900 million remains available for that purpose.
So, what's the problem? Well, analysts expect inflationary pressures to begin to weigh on sales growth. Moreover, market share gains by competitors such as Celsius Holdings may erode Monster's pricing power and limit revenue growth.
Such reasons may explain why analysts expect Monster's revenue growth to slow to a 17% yearly rate by the end of the year. In 2027, they forecast only 10% annual revenue growth, which could further sour investors on the stock.
Consequently, Monster has retreated by approximately 15% from its July high. Additionally, its P/E ratio is at 40. That is not far above the five-year average of 38, but considering it has fallen as low as 28 during that period, it leaves Monster stock vulnerable to a pullback.
To be clear, such conditions likely do not make it a sell. Monster remains the second-most popular energy drink brand in the U.S. behind Red Bull. Also, a growth stoppage or reversal is unlikely to be in the cards. Nonetheless, the impending slowdown may not bode well for the stock over the next 12 months.
Monster Beverage stock is a hold
Over the next 12 months, investors should not expect a market-beating performance from Monster Beverage stock.
Indeed, it has recently benefited from rapid revenue growth and increasing international popularity. Unfortunately, competitors are on track to gain some ground on the company, and rising costs could take a further toll.
Amid such conditions, it is probably not a good time to buy the stock at an above-average valuation, especially when growth rates are set to slow.
Monster is likely to remain a leading brand among energy drinks, and its continued growth should bolster the stock in the long term. However, even though investors should not necessarily avoid Monster Beverage stock, shareholders should not expect a market-beating performance from it in the near term.
Should you buy stock in Monster Beverage right now?
Before you buy stock in Monster Beverage, consider this:
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monster Beverage. The Motley Fool recommends Celsius Holdings. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Where Will Monster Beverage Stock Be in 1 Year?

Key Points
Coca-Cola is a globally diversified consumer staples company with a long history of growth.
A 30-year Treasury bond leaves you open to the ravages of inflation.
If you are looking for yield today, rising interest rates have increased your options. For example, the 30-year Treasury bond's yield is around 5.3% as of this writing. By comparison, the S&P 500 index (SNPINDEX: ^GSPC) is only yielding around 1%. But there are still two big reasons why investors may want to buy a high-yield dividend stock like Coca-Cola (NYSE: KO), even though its 2.4% yield isn't even close to the 30-year Treasury yield.
A 30-year Treasury locks you in
A bond is an agreement between the lender and the borrower. The lender provides a fixed amount of cash, while the borrower pays interest at a fixed rate until the loan matures. When the loan matures, the borrower repays the bond's principal. Everything is fixed, and both the value of the interest collected and the bond's principal are slowly eroded by inflation. It doesn't matter that 30-year Treasuries are considered safe because they are backed by the U.S. government. The big inflation risk is still the same.
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If you have a short investment time horizon, inflation may not be a big issue for you. In which case, the 5.3% yield of a 30-year Treasury would probably be more attractive than Coca-Cola's 2.4% yield. However, if you have a long time horizon, Coca-Cola's yield comes with something that a Treasury doesn't: Growth.
Coca-Cola is one of the world's largest consumer staples companies. It has an incredible history of growth, highlighted by 64 annual dividend increases. That makes the company a Dividend King. But think about that for a second, you can collect 30 years of the same income from a bond or 30 years of increasing income from Coca-Cola. Since the start of 1996, roughly 30 years ago, the company's dividend has increased by nearly 750%. That dividend growth was driven by the company's growth, which also led to an over 300% increase in the stock price. If you hold a bond to maturity, all you get back is the principal.
Long-term investors should stick with Coca-Cola
If your investment horizon spans decades, you need to think carefully about how inflation will impact your income investments. Bonds may start with higher yields than Coca-Cola, but at the end of the day, Coca-Cola's strong business and dividend history suggest it will be the better income investment for most income-focused investors. Don't get so caught up in the 30-year Treasury yield that you overlook how Dividend King Coca-Cola's long-term growth can offset inflation's insidious impact.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Coca-Cola Loses to 30-year U.S. Treasury Bonds on Yield. Here's Why It Wins on Everything Else.

Consumer staples stocks could become increasingly attractive if stubborn inflation pushes the Federal Reserve, under new Chairman Kevin Warsh, toward renewed monetary tightening.
August's Consumer Price Index (CPI) rose 0.4% month over month and 3.4% annually, while core prices increased 0.3% monthly, coming in hotter than expected and strengthening the case for a potential Fed rate hike.
Higher interest rates typically cool consumer spending and economic growth, which can favor defensive businesses that sell everyday necessities.
In that environment, Coca-Cola (KO), Procter & Gamble PG), and Walmart WMT) stand out thanks to resilient demand, strong brands, and reliable dividends.
Adding to their defensive appeal, all three are Dividend Kings, with each having raised its dividend for more than 50 consecutive years.
Image Source: U.S. Bureau of Labor Statistics; chart created by ChatGPT
Coca-Cola's Pricing Power
Coca-Cola's vast beverage portfolio and enormous global distribution network give the company considerable pricing power, which can help offset inflationary increases in commodities, packaging, transportation, and labor costs.
More importantly, consumers tend to keep purchasing beverages regardless of economic conditions, making KO a defensive holding if higher rates slow discretionary spending.
Income investors also receive an annualized dividend of $2.12 per share, equating to a yield of roughly 2.4%. Coca-Cola raised its dividend for the 64th consecutive year in 2026.
Procter & Gamble's Defensive Appeal
Procter & Gamble may offer similar protection as Coca-Cola, with household staples such as Tide, Pampers, Crest, Gillette, and Charmin generating relatively consistent demand even during weaker economic periods.
P&G's powerful brands also provide pricing flexibility when input costs rise. Furthermore, PG currently offers an annualized dividend of $4.35 per share, yielding 3%, after increasing its dividend for an impressive 70th consecutive year.
Walmart Could Benefit From Consumer Trade-Down
Walmart offers a slightly different defensive thesis. Persistent inflation and higher borrowing costs can squeeze household budgets, potentially driving more consumers toward Walmart's value-oriented stores and grocery business.
This could allow Walmart to capture additional market share if consumers trade down from higher-priced retailers. WMT also provides an annual dividend of $0.99 per share, currently yielding near 1%, with 2026 marking its 53rd consecutive annual dividend increase.
Bottom Line
Renewed Fed tightening wouldn't automatically make these consumer staples stocks winners, as higher Treasury yields can also make dividend stocks relatively less attractive.
Still, KO, PG, and WMT could offer investors a compelling defensive combination of resilient demand, pricing power, dependable cash flow, and recurring dividend income if persistent inflation forces the Fed to raise rates and weighs more heavily on economically sensitive areas of the market.
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3 Dividend Kings to Buy if the Fed Starts Raising Rates: KO, PG, WMT

When considering dividend-paying stocks, those with a history of increasing payouts are prime candidates, reflecting their commitment to increasingly rewarding shareholders.
And when it comes to a consistent history of increased payouts, look no further than the Dividend Aristocrats. Several members of the club, including Johnson & Johnson JNJ, Coca-Cola KO, and Exxon Mobil XOM, are trading near all-time highs, reflecting bullish momentum driven by strong results or favorable operating conditions.
Below is a chart illustrating the YTD performance of each.
Johnson & Johnson Lifts Outlook
Johnson & Johnson’s biggest strength is its diversified business model, with more than 275 subsidiaries that provide a strong shield against economic fluctuations.
Strong operational performance led the company to increase both its current fiscal year sales and adjusted EPS guidance in its latest quarterly release, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history.
JNJ is not only a Dividend Aristocrat but also a Dividend King, a title held by companies with at least 50 years of consecutive annual dividend increases, owing to its ability to consistently reward shareholders throughout its long-standing history. Shares yield 2.0% annually, nearly double the current yield of the S&P 500.
JNJ is an extremely defensive stock given its ability to generate sales no matter the current backdrop, making it a top-tier option for those seeking a layer of defense paired with predictable dividend payouts. It has also been an excellent earnings performer, posting a double-beat relative to our consensus expectations in nine consecutive quarters.
Coca-Cola Capitalizes on Shifting Consumer Preferences
Coca-Cola’s brand equity, marketing, research, and innovation support a market share of more than 40% in the non-alcoholic beverage industry, with a product portfolio across a broad range of consumer needs and drinking occasions.
Coca-Cola’s latest results reflected nice strength, with Q2 sales climbing 7% YoY to $13.4 billion and EPS jumping 11% to $0.97. Importantly, the company has capitalized well on consumers’ shift and wants toward less-sugary options, reflected in 16% YoY volume growth in Coca-Cola Zero Sugar in the above-mentioned period.
Like JNJ, Coca-Cola is also a Dividend King, known for its consistent, increasing dividend payouts throughout time. Shares currently yield a solid 2.4% annually, with it also sporting a 5% five-year annualized dividend growth rate.
The earnings growth outlook for KO remains solid, with Zacks Consensus estimates suggesting 9.7% earnings growth in 2026 and another 7% in FY27. The growth here is quite strong given its overall mature nature, showcasing its ability to generate higher profits on the back of capitalizing on shifting preferences.
ExxonMobil Benefits Greatly From Higher Oil
ExxonMobil shares have delivered a strong performance in 2026 on the back of higher oil prices stemming from geopolitical concerns. Higher oil prices boost cash generation, which is why it remains a favorite among many income-focused investors.
Free cash flow of $17.5 billion in its latest quarter grew by a triple-digit 600% YoY, reflecting the highly favorable operating environment it’s been sitting in for the bulk of 2026. Shares currently yield 2.5% annually, with XOM carrying a 3.9% five-year annualized dividend growth rate.
That said, oil prices are undoubtedly volatile as we’ve learned this decade, but improved operational efficiencies mean it stays heavily cash-generative even in lower-price environments. Shares currently yield 2.5% annually, and XOM also provides strong shareholder returns through share buybacks.
Bottom Line
Consistently growing dividend payouts reflect rock-solid business fundamentals, with companies like Johnson & Johnson JNJ, Coca-Cola KO, and ExxonMobil XOM all showing their ability to return value to shareholders across different economic environments. Their strong cash-generating abilities also provide a higher level of defense during wider market volatility, offering another advantage for investors seeking a level of stability whenever sentiment shifts.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

3 Top Dividend Aristocrats To Own Near All-Time Highs

Key Points
The Oracle of Omaha retired on Dec. 31, paving the way for Greg Abel to take control of Berkshire’s $360 billion investment portfolio.
Although Abel shook things up in the first quarter, the one trait he and Buffett share is concentrating Berkshire’s invested assets in their best ideas.
In addition to tech stocks suddenly being on the menu, financial stocks and Warren Buffett’s “indefinite” holdings should remain key elements of Berkshire Hathaway’s portfolio.
It's officially the beginning of a new era for one of Wall Street's most prized public companies. Warren Buffett's Dec. 31 retirement as CEO of Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) paved the way for his protégé, Greg Abel, to take the reins. Although Buffett remains chair of Berkshire's board, it's Abel now overseeing the company's day-to-day operations and its $360 billion investment portfolio.
Abel was quick to make his mark, with Berkshire's new boss jettisoning 16 positions from the portfolio in the first quarter.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Warren Buffett retired as Berkshire's CEO on Dec. 31. Image source: The Motley Fool.
But the one clear carryover from the Oracle of Omaha to Abel is portfolio concentration. Both of Berkshire's bosses strongly believe in concentrating their company's invested capital in their best ideas. As of the closing bell on Sept. 4, Warren Buffett's successor had nearly 82% (almost $294 billion) of Berkshire Hathaway's invested assets in just 10 superstar stocks:
Apple (NASDAQ:AAPL): $72.93 billion (20.2% of invested assets)
Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG): $35.78 billion (9.9%, both share classes combined)
Bank of America (NYSE:BAC): $30.3 billion (8.4%)
Occidental Petroleum (NYSE:OXY): $15.91 billion (4.4%)
Tech stocks are on the menu
Perhaps the most noticeable difference between Berkshire's portfolio under Abel compared to Warren Buffett is that tech stocks are officially on the menu under new management. In addition to Apple retaining its top spot, Abel has piled into Google parent Alphabet since the year began.
Although Alphabet has an especially safe foundation, given the Google search engine's virtual monopoly in global internet search traffic, it's the company's artificial intelligence (AI) ambitions that are truly exciting. Since integrating generative AI and large language model capabilities into Google Cloud, sales for this considerably higher-margin segment have gone parabolic. Google Cloud registered 82% year-over-year sales growth in the June-ended quarter.
Financial stocks are still a pillar of Berkshire's portfolio
Even though Warren Buffett is no longer steering the ship, financial stocks remain a key part of Berkshire's long-term investment approach. Collectively, American Express, Bank of America, Moody's, and Chubb make up close to 29% of Berkshire's invested assets.
The beauty of financial stocks is their cyclical ties. Even though financial companies struggle during inevitable economic slowdowns and recessions, the non-linear nature of economic cycles strongly favors patient investors like Buffett and Abel. For instance, long-winded economic expansions allow Amex and BofA to prudently lend capital and generate meaningful interest income.
Image source: Getty Images.
Buffett's "indefinite" holdings aren't going anywhere
Lastly, Berkshire Hathaway's highly concentrated positions drive home the idea that Warren Buffett's "indefinite" holdings aren't going anywhere.
In the Oracle of Omaha's 2023 letter to shareholders (released in early 2024), he outlined eight stocks he viewed as indefinite/forever holdings. This included Coca-Cola, Amex, Occidental Petroleum, and all five Japanese trading houses, Mitsubishi among them.
While some of these companies are long-tenured holdings with otherworldly yields on cost, such as Coca-Cola and Amex (held since 1988 and 1991, respectively), they all represent relatively safe, reasonably valued, dividend-paying businesses that can benefit from global economic growth.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Alphabet and Bank of America. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, Berkshire Hathaway, Chevron, and Moody's. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

Warren Buffett's Successor, Greg Abel, Has 82% of Berkshire's $360 Billion Portfolio Concentrated in 10 Superstar Stocks

Key Points
To brace against market pullbacks, add some defensive stocks or funds to your mix.
Defensive industries include healthcare, utilities, and consumer staples.
Dividend payers can be great to hold in market downturns, too.
Is a stock market crash imminent? Well, no one knows for sure, but roughly 38% of investors surveyed by the American Association of Individual Investors reported expecting the stock market to decline over the coming six months (as of early September). Another worrisome sign is the S&P 500's historically high valuation. The cyclically adjusted price-to-earnings (CAPE) ratio was recently at 41.4, far higher than its long-term average of 17.4 and close to an all-time high of 44 reached in 1999 before the dot-com bubble turned into a crash.
It's generally not smart to jump out of the market fearing a crash -- because that's market timing -- and your timing may well be off. Instead, to calm your jitters, you might just invest in some exchange-traded funds (ETFs) that are built to withstand bear markets better than average investments.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
A market crash or correction will happen one of these days. Here are some ETFs to consider, to brace against that. Each is focused on a "defensive" part of the economy -- on businesses that consumers will generally keep buying from, no matter how the economy is doing.
Vanguard Health Care Index Fund ETF
The Vanguard Health Care Index Fund ETF (NYSEMKT: VHT) is a prime example. In a recession, people will still need healthcare -- they will still buy their medications (to the degree that they're able to) and will still visit doctors. This fund recently held 417 stocks, with top holdings including Eli Lilly, Johnson & Johnson, and UnitedHealth Group. Its annual fee is just 0.09%, costing you $9 annually for every $10,000 you have invested in the fund, and its dividend yield was recently 1.5%.
State Street Utilities Select Sector SPDR ETF
The State Street Utilities Select Sector SPDR ETF (NYSEMKT: XLU) also has a low annual fee -- just 0.08% -- and its dividend yield was recently 2.8%. It's focused on utility-related companies, such as NextEra Energy, Southern Co., and Duke Energy, and it recently held about 31 of them. When the economy flags, people and businesses will still need to keep the lights on.
Vanguard Consumer Staples Index Fund ETF Shares
The Vanguard Consumer Staples Index Fund ETF Shares (NYSEMKT: VDC) specializes in consumer staples companies, recently holding 103 of them, such as Walmart, Procter & Gamble, and Coca-Cola. Its annual fee is 0.09%, and its recent dividend yield 2.1%. Clearly, no matter whether the economy is up or down, gobs of people will want to keep buying shampoo, soda, and items from Walmart.
Schwab U.S. REIT ETF
The Schwab U.S. REIT ETF (NYSEMKT: SCHH) is another defensive ETF, in that it holds many real estate investment trusts (REITs) -- companies that buy properties and lease them out. These are typically multiyear leases, if not multidecade, so that income is likely to keep rolling to the REITS. The ETF's annual fee is just 0.07%, and its recent dividend yield 2.8%. Its recent 117 holdings included Prologis, American Tower, and Realty Income.
Schwab U.S. Dividend Equity ETF
A solid dividend-focused ETF such as the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is also worth considering. (There are other good dividend ETFs, too, of course.) Why? Because dividend-paying companies tend to be established and profitable, with relatively dependable income. So they're more solid than the average stock. This ETF has an ultra-low annual fee of 0.06% and a recent dividend yield of 3%. Its top holdings (out of 98) recently included Merck, Chevron, and Verizon Communications.
Dividend income is particularly nice during recessions because while some stocks may be stagnating, healthy dividend payers will keep delivering cash to shareholders.
Whether the stock market pulls back this year, next year, or the year after, these ETFs will likely keep growing -- and delivering a little income regularly, too. Take a closer look at any of these funds that intrigue you.
Should you buy stock in Vanguard World Fund - Vanguard Health Care ETF right now?
Before you buy stock in Vanguard World Fund - Vanguard Health Care ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard World Fund - Vanguard Health Care ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 10, 2026.
Selena Maranjian has positions in American Tower, NextEra Energy, Procter & Gamble, Realty Income, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends American Tower, Chevron, Eli Lilly, Merck, NextEra Energy, Prologis, Realty Income, and Walmart. The Motley Fool recommends Duke Energy, Johnson & Johnson, UnitedHealth Group, and Verizon Communications. The Motley Fool has a disclosure policy.

These 5 ETFs Are Built for Bear Markets. History Says Now Is a Fantastic Time to Buy.

Key Points
PepsiCo raised its quarterly dividend 4% in May, extending a streak that started in 1972.
The stock yields 4.3% at recent prices, beating the best high-yield savings accounts.
Reinvested dividends turned a 29% stock gain into a 75% total return over 10 years.
Let me cut to the chase. PepsiCo (NASDAQ: PEP) is a fantastic dividend growth stock to buy right now and hold for a very long time.
The raise that keeps on giving
PepsiCo raised its dividend in May 2026. The quarterly payout was set to $1.48 per share, which is a 4% increase from the previous quarter and the year-ago period. The dividend policy works out to a generous 4.3% annual yield against recent prices, comparing favorably to even the best high-yield savings accounts nowadays.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But that's not the whole story. You see, this wasn't PepsiCo's first dividend boost. The company is a Dividend King, which means it has raised its payouts for at least the last 50 years. The soda and snack giant's check-boosting streak started 54 years ago, in 1972.
Dividends did PepsiCo's heavy lifting
In other words, PepsiCo isn't just a consistent dividend payer, but a deeply committed dividend growth stock. The company's free cash flows rose 131% over the last two decades. Dividends paid quintupled over the same period.
And the rich payouts make a real difference to shareholder returns. PepsiCo's stock price rose 29% over the last decade. If you reinvested the dividends in more stock along the way, you'd have a total return of 75% instead.
The lag is the opportunity
The 10-year returns don't look great compared with the S&P 500 (SNPINDEX: ^GSPC), whose total return has surged 319% since September 2016. Then again, PepsiCo isn't a player in the AI boom, which drove most of the index's outperformance in recent years.
And that underperformance is part of my investment thesis here. As of Sept. 8, PepsiCo's stock is down 14.3% over the past six months. Coca-Cola (NYSE: KO), Keurig Dr Pepper (NASDAQ: KDP), and Monster Beverage (NASDAQ: MNST) all gained at least 13%. As a result, PepsiCo carries some of the lowest valuation ratios in the large-cap beverage sector.
That's the Dividend King I want in my portfolio: a boring snack-and-soda machine that keeps raising the check every year, currently marked down for a September sale.
Should you buy stock in PepsiCo right now?
Before you buy stock in PepsiCo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PepsiCo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 9, 2026.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monster Beverage. The Motley Fool has a disclosure policy.

My Top Dividend Growth Stock to Buy in September and Hold Forever

Key Points
AMD's stock is valued at more than double Nvidia's.
Nvidia is more exposed to data center revenue.
When two companies competing in the same industry have similar operating profiles, they tend to be priced about the same in terms of valuation. The market is full of examples like this: PepsiCo and Coca-Cola, Home Depot and Lowe's, Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD). However, the latter has experienced an unprecedented valuation split, and investors need to be aware of it.
Typically, there's one company that's more dominant than the other, and that company usually has a premium valuation. This is true for the stocks mentioned above, except for AMD and Nvidia. Despite Nvidia having a larger market share and growing faster than its peer, AMD is the more expensive stock. This is not a normal situation, and investors should be aware of it, as it should shape which of the stocks investors have higher exposure to.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why is AMD stock so expensive?
Both AMD and Nvidia are growing at an impressive rate; as a result, using a trailing earnings metric like the price-to-earnings (P/E) ratio doesn't paint the full picture of where these two stocks should actually be valued. However, there is a huge gap when trailing earnings are used.
From this perspective, AMD has always been more expensive throughout the past few years as the AI arms race accelerated. However, AMD's earnings were heavily affected by profit margins that weren't optimal, thus the high valuation. AMD's margins are improving, but they're still nowhere close to Nvidia's, nor will they ever be.
Nvidia's profit margins -- which are after tax -- are actually higher than AMD's gross margins -- which are pretax. This is incredible considering these two are in a similar industry. However, when you look at the breakdown of these two businesses, it's clear that AMD will never match Nvidia's margins without a complete overhaul.
Nvidia is heavily focused on graphic processing units (GPUs) and the hardware that supports them, particularly in its data center division, which is benefiting significantly from the AI build-out. Nvidia products have been the industry standard from the beginning, and AMD hasn't been able to wrest away that leadership. In Q2, $89 billion of Nvidia's $96.2 billion total revenue came from its data center division. Because this segment is supply-constrained and Nvidia has the premium product, it can charge a higher price and make a ton of profit from these devices.
AMD has a different business. While it also has heavy exposure to data centers, that exposure is not nearly as high. In Q2, AMD's data center division generated $6.7 billion in revenue out of a total of $11.5 billion. That leaves its other divisions with a much higher share of total revenue, and these divisions don't have nearly as good an operating profile as Nvidia's data center business.
Division
Revenue
Operating Income
Operating Margin
Data Center
$6.7 Billion
$2.1 Billion
31%
Client & Gaming
$3.8 Billion
$582 Million
15%
Embedded
$977 Million
$386 Million
40%
Because so much of AMD's business comes from lower-margin Client & Gaming division, it will never be able to catch Nvidia's margins in its current form.
This should secure Nvidia's place as having a higher valuation than AMD, but it doesn't. And that is a signal for investors to sell AMD and buy Nvidia instead.
Nvidia's stock is cheap
If we use forward earnings, which include margin improvements and growth that AMD investors can expect, we see a stark contrast between the two that has only recently emerged.
When we utilize next fiscal year's projections, this difference is even more apparent.
Nvidia is much cheaper than AMD while also being a better business. I think investors need to take advantage of this price mismatch and scoop up shares of Nvidia, as this deal won't last forever.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 9, 2026.
Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Home Depot, and Nvidia. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.