Coca-Cola Is Crushing the S&P 500 and Nasdaq-100. But There's an Even Better Reason to Buy the Stock in July.

July 12, 2026 - 02:07

Coca-Cola has been quietly outperforming the broader market this year, beating both the S&P 500 and the Nasdaq-100 in total return. While that alone might catch the eye of growth-focused traders, the real story for long-term investors is something else entirely: the company's dividend.

For decades, Coca-Cola has been one of the most reliable dividend stocks on the planet. The beverage giant has raised its payout for 62 consecutive years, earning it a spot among the elite group of Dividend Kings. But July brings a specific reason to pay attention. The company typically declares its third-quarter dividend in the middle of the month, and given its track record, another increase is widely expected. Even a modest hike would extend that legendary streak and boost the stock's already attractive yield.

Beyond the dividend, Coca-Cola's business remains sturdy. While consumer spending has shifted in some areas, demand for its core sodas, water, and sports drinks stays resilient. The company has also been smart about pricing and packaging, offering smaller cans and bottles to keep products affordable without hurting margins. This pricing power, combined with a global distribution network that competitors struggle to match, gives Coca-Cola a durable moat.

For income-focused investors, the stock offers a rare combination: a growing passive income stream and a business that tends to hold up well during economic uncertainty. The market-beating performance is a nice bonus, but the real value lies in that steady, rising dividend check that lands in your account quarter after quarter.