Is Coca-Cola The #1 Stock During the Next Market Meltdown?

The recent market rebound feels more like a shaky truce than a confident comeback. Sure, stocks have climbed back from bear territory since April, but between persistent inflation and rising geopolitical tensions (hello, Middle East), the whole thing still feels like a house of cards.

So what do you do if you’re worried the next leg down is coming? You don’t necessarily have to jump ship. But you do want to be more selective. That means less exposure to fragile, high-volatility stocks, and more ownership of companies with real staying power.

One name that consistently delivers is Coca-Cola (NYSE: KO). It’s got all the hallmarks of an investment to hold through thick and thin.

Key Points

• Coca-Cola’s beverages remain in high demand even during downturns, allowing it to grow sales and raise prices despite inflation.

• Local bottling model shields it from tariffs and supply chain issues, reducing geopolitical and inflation risk.

• A nearly 3% dividend yield and 63 consecutive years of increases make it a dependable pick during market volatility.

Coke’s Strength Is in Simplicity and Resilience

What makes Coca-Cola a compelling buy when markets go haywire is surprisingly straightforward: people keep drinking it. Regardless of whether the S&P 500 is booming or busting, Coke’s beverages, from its namesake sodas to teas, juices, and water, remain in demand.

Most people don’t realize just how far Coca-Cola’s reach goes. Beyond the red can, this company owns Gold Peak, Minute Maid, Sprite, Powerade, Smartwater, and more. It’s not just a soda shop, it’s a global beverage empire.

Consumers don’t stop buying these products when the economy slumps. Even with inflation biting into budgets in 2023 and 2024, Coke’s global sales volume rose. On top of that, the company pushed through price increases that led to organic revenue growth closing north of 11% in each of those years.

In a world where many companies are discounting just to move inventory, Coca-Cola is doing the opposite, and customers are still lining up.

Built to Withstand Global Disruption

In today’s climate, any company heavily reliant on international trade is exposed. Tariffs, sanctions, and supply chain disruptions can wreak havoc, fast.

But Coca-Cola sidesteps much of that mess. Why? Because it bottles most of its products locally. That’s right, rather than manufacturing drinks in one place and shipping them around the world, Coca-Cola partners with about hundreds of regional bottlers operating nearly a thousand facilities globally. That decentralization shields the business from many cross-border headaches.

Even better, much of the heavy lifting, from local marketing to distribution, is handled by those bottlers. That setup insulates Coca-Cola’s core business from many variable costs, including those that spike during inflationary periods.

If you’re looking for a company that’s not overly exposed to global political gamesmanship or rising logistics costs, Coke checks the box.

A Dividend You Can Count On Even in a Downturn

Now let’s turn our attention to dividends. While no stock is entirely immune to a broad sell-off, and Coca-Cola has certainly had its dips during past recessions, investors still flock to it for one big reason, a reliable income stream.

Right now, Coca-Cola sports a forward dividend yield closing in on 3%. That might not sound thrilling when growth stocks are surging, but in a down market where capital gains are hard to come by, that steady cash flow becomes a lifeline.

And it’s not just any dividend, Coca-Cola has raised its payout for six decades. That’s a level of consistency very few companies can match. Even if the share price takes a hit in a bear market, shareholders still get paid to wait out the storm. And when the market turns, as it eventually will, investors who stuck with names like KO are often better positioned to capitalize on the rebound.

Coca-Cola Makes Market Volatility Easier to Swallow

You don’t need to predict the exact moment the next bear market hits to prepare for it. But you can make moves now to reduce your downside without giving up long-term upside.

That’s where a stock like Coca-Cola shines. Its products are ubiquitous, its pricing power is intact, its global model is built for resilience, and it delivers dependable income even when most of the market stumbles.

No, it won’t shoot the lights out in a raging bull market. But that’s not the point. Coca-Cola is what you buy when you want to stay invested, without the gut-wrenching volatility.

And if this bear market has another act left in it, having KO in your portfolio might be one of the easier decisions you’ll thank yourself for later.