Bank of America says this 107-year dividend giant is on sale

It's not often that dividend stalwarts are viewed arsenic evidently mispriced, but Bank of America sees an objection successful Coca-Cola (KO) stock. 

For generations of investors, Coca-Cola has delivered uninterrupted dividend income, paying each twelvemonth since 1920, according to Investing.com.

That grounds stretches backmost agelong earlier astir modern blue-chip investors were born. More importantly, Coca-Cola belongs to an elite radical of companies that person raised their dividends for 63 consecutive years, earning it the moniker "Dividend King," according to Seeking Alpha.

Now, successful a enactment shared with me, Bank of America analysts reason that investors tin scoop up this dividend instrumentality astatine a compelling discount up of a cardinal Q2 net merchandise connected July 28.

BofA isn't treating Coca-Cola arsenic a bushed antiaircraft stock; successful fact, it sees constricted ostentation vulnerability and ample fiscal flexibility to navigate macro headwinds with aplomb. 

Why BofA sees a uncommon opening successful this dividend machine

Bank of America conscionable gave Coca-Cola banal a large thumbs up earlier its Q2 net report.

It reiterated its buy standing and, much importantly, raised its terms people to $95 from $90, implying astir 15% upside.

BofA's bullishness connected KO banal has everything to bash with the prime and durability of its resilient underlying business. 

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What makes it a standout among peers is its resilient demand, constricted ostentation exposure, and robust balance-sheet flexibility. 

Case successful point: Its trailing 12-month gross borderline has held dependable astatine around 61.7%, oregon astir 160 ground points supra its five-year mean of 60.1%, according to Seeking Alpha. 

That statistic is critical, particularly fixed the existent volatility successful the macroeconomic situation and the troubling comments from PepsiCo's CEO during the company's Q2 net call. 

PepsiCo CEO Ramon Laguarta said U.S. user request was weaker than the institution expected owed to state prices, which pressured budgets and wounded impulse demand.

"Is the measurement arsenic overmuch arsenic we expected? No, not successful Q2. It's a mates of elements. I deliberation the user is worse than what we had anticipated, and it's driven chiefly by state prices," said Laguarta.

Interestingly, BofA analysts argued that alternatively of weakness connected the North American side, they consciousness sluggishness overseas. 

The determination representation is mixed, with BofA lowering Latin America expectations to +1.4% but raising EMEA to +2.3% and Asia Pacific to +2.9%, helped by amended trends successful Japan. North America stayed dependable astatine +1.5%.