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

As of marketplace adjacent connected July 8, the Nasdaq-100, which consists of the 100 largest non-financial companies listed connected the Nasdaq banal exchange, is up a rip-roaring 16% successful 2026, portion the S&P 500 is up 9% twelvemonth to day (YTD).

Massive gains from spot stocks Intel, Advanced Micro Devices, Marvell Technology, Micron Technology, and Sandisk, arsenic good arsenic semiconductor instrumentality manufacturers Applied Materials and Lam Research, are driving the indexes to caller highs. So it whitethorn astonishment investors to larn that Coca-Cola (NYSE: KO) is outperforming the Nasdaq-100 and S&P 500 with a 19% YTD return.

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Coke deed a caller all-time precocious connected July 7, and immoderate investors whitethorn consciousness there's plentifulness of country to tally from here. However, the champion crushed to bargain the dividend banal successful July isn't its momentum, but alternatively what Coke delivers for investors adjacent during times of uncertainty.

As reliable arsenic they travel

Coke is producing exceptional results contempt inflationary and user spending pressures connected the user staples sector. In the archetypal 4th of 2026, Coke grew nett gross by 12% acknowledgment to higher volumes and prices. It besides reported an awesome 35% operating borderline -- a testament to its elite proviso chain, marketing, and web of bottling partners that mix, package, and administer finished products to stores and restaurants.

For the afloat year, Coke expects integrated gross maturation of 4% to 5% and net per stock (EPS) maturation of 8% to 9%, up from $3 successful 2025 EPS. The institution besides expects to make a staggering $12.2 cardinal successful escaped currency travel (FCF).

In February, Coke reaffirmed its spot connected the database of Dividend Kings -- an elite radical of companies that person raised their yearly payouts for astatine slightest 50 consecutive years -- by raising its quarterly dividend from $0.51 to $0.53 per share, marking its 64th consecutive yearly dividend increase. Q1 2026 was the archetypal 4th to diagnostic the higher dividend, which outgo Coke $2.28 billion, for a tally complaint of $9.12 cardinal per year.

Coke's size and 2.6% output springiness it 1 of the highest dividend yields among S&P 500 companies. But based connected its 2026 FCF projection, Coke should inactive person implicit $3 cardinal near implicit successful FCF, adjacent erstwhile accounting for its dividend expenses.

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