<div id="readability-page-1"><p>Beverage specialist <strong>Coca-Cola</strong> <span>(KO<span> 1.40%</span>)</span> started the year strong, but it has flatlined -- at best -- since May. Since July, the stock has declined by 3%, while the <strong>S&amp;P 500</strong> has increased by 4% over the same period. It's never a good idea to sell a stock based on a few months of underperformance, and in this case it would be an especially bad idea. All things considered, Coca-Cola is a terrific pick, particularly for those seeking solid dividend stocks. Here is why the iconic beverage maker is a worthwhile long-term investment.</p> <h2>Coca-Cola's resilient underlying business</h2> <p>Coca-Cola's shares likely rose earlier this year because it was perceived as a safe option amid the threat of tariffs. The company is a well-established leader in the consumer staples sector, an industry known for its resilience during economic downturns. Furthermore, although Coca-Cola has a presence in nearly every country, it tends to manufacture products locally for each region, helping it avoid heavy import duties.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjkyMTEvcGVyc29uLWRyaW5raW5nLWJvdHRsZWQtZHJpbmstd2l0aC1hLXN0cmF3LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjkyMTEvcGVyc29uLWRyaW5raW5nLWJvdHRsZWQtZHJpbmstd2l0aC1hLXN0cmF3LmpwZyZ3PTcwMA"/></p><p>Image source: Getty Images.</p> </div> <p>That said, Coca-Cola's financial results haven't been particularly strong this year. In the second quarter, the company's net revenue increased by just 1% year over year to $12.5 billion. Coca-Cola's non-GAAP (generally accepted accounting principles) net earnings per share grew by 4% year over year to $0.87. Still, Coca-Cola continues to exhibit qualities that make it an excellent long-term investment. One of them is innovation. Coca-Cola has consistently updated its product lineup to cater to shifting consumer preferences.</p> <p>The company's CEO, James Quincey, explained the importance of this during Coca-Cola's second-quarter earnings conference call: &#34;I think the industry, given its size, its attractiveness and its growth potential, we're always looking for opportunities to innovate and see whether there's an intersection of new ideas and where consumer preferences are evolving toward, remembering that actually most innovations don't work in the long-run.&#34;</p> <p>The company launched Sprite + Tea during the second quarter, a new product that gained popularity on social media. Coca-Cola plans to introduce a cane sugar-flavored Coke product this fall. The company has created Coke products with added dietary fiber in Japan and plans to continue exploring fiber-enhanced options.</p>  <p>Coca-Cola's lineup is constantly evolving. The company boasts products across almost every major beverage category. Coca-Cola also has the means to acquire up-and-coming brands and bring them into its ecosystem. Another great thing is that, thanks to its incredibly strong brand, a few highly popular products can have a significant impact on the company's results. Coca-Cola's name recognition also guarantees it a spot on grocery store shelves, something that isn't easy for newcomers in this highly competitive market.</p> <p>Coca-Cola may not blow the market out of the water every single quarter, but it generates consistent revenue and profits, routinely launches new products to expand its reach, has a moat thanks to its brand name, and can navigate challenging market conditions. That makes the stock highly attractive to long-term investors.</p> <h2>A rare dividend track record</h2> <p>Coca-Cola hasn't just been successful for a while. The company has also been paying -- and growing -- its dividend for a long time. Coca-Cola has achieved a streak of 63 consecutive years of dividend payout increases, earning it the title of Dividend King. This period encompasses numerous recessions, several wars, presidential administrations, regulatory changes, and significant shifts in consumer preferences. Coca-Cola's ability to continue rewarding shareholders with payout hikes through all this speaks volumes about the business.</p> <p>The company's forward yield tops 2.9%, higher than the S&amp;P 500's average of 1.3%. Is Coca-Cola's dividend sustainable? The company's payout ratio of 70.6% looks high. But in my view, it's nothing to worry about. A lot would have to go wrong for Coca-Cola to interrupt its long track record of dividend increases and have to start from scratch to maybe join the ranks of Dividend Kings again in another 50 years. Even during the pandemic, when foot traffic in stores decreased and the company's revenue and earnings fell significantly, Coca-Cola continued to grow its payouts.</p> <p>The dividend is safe. The stock is an excellent choice for long-term, dividend-oriented investors to include in their portfolios.</p>                                                                            </div>

<p>Coca-Cola (KO) has seen a 4% decline in stock price, despite being a strong long-term investment, particularly for dividend seekers. The company reported a modest 1% revenue increase to $12.5 billion in Q2, with a 4% rise in earnings per share. Coca-Cola's innovation, strong brand presence, and consistent dividend growth over 63 years, with a yield of 2.9%, make it attractive for investors. Despite recent underperformance, its resilient business model and ability to adapt to consumer preferences suggest a promising future for long-term holders.</p>

- Coca-Cola has experienced a decline in stock value since May, with a 3% drop since July, while the S&P 500 rose by 4%.  
- Despite this, Coca-Cola remains a strong long-term investment due to its resilient business model, consistent innovation, and a remarkable 63-year history of increasing dividends.  
- The company's strong brand presence and ability to adapt to consumer preferences further enhance its attractiveness to dividend-oriented investors.  

1 Magnificent S&P 500 Dividend Stock Down 4% to Buy and Hold Forever