Shares in The Coca-Cola Company and Philip Morris International are gaining attention as reliable investments for long-term growth, particularly due to their robust dividend offerings. Dividends play a crucial role in the stock market, contributing 31% of all gains since 1926 according to S&P Global. This consistent return allows investors to focus on a company’s fundamentals, such as profitability and leadership, rather than the volatility of stock prices.
### The Coca-Cola Company
Coca-Cola, a quintessential blue chip stock, is well-established in the beverage sector, recognized globally for its extensive portfolio of drinks. The company has built a reputation for delivering steady dividend payments for decades, making it a potentially excellent choice for long-term buyers. Coca-Cola’s performance appears secure due to its healthy profit margins and resilience during varying economic conditions.
Key metrics reveal a current price of $79.14 with a market capitalization of $340 billion. For the third quarter, Coca-Cola reported a year-over-year revenue increase of 5%, reaching $12.5 billion. The company’s operating margin stands at 32%, underscoring its ability to maintain profit levels despite rising costs. Furthermore, the beverage giant has demonstrated significant pricing power, raising the price of a 12-pack of Coke by 89% from 2020 through 2025, reflecting its strength in consumer loyalty.
Despite its relatively modest dividend yield of 2.71%, Coca-Cola has experienced a remarkable 58% increase in share value over the past five years, showcasing its potential for capital appreciation alongside stable income.
### Philip Morris International
Similarly, Philip Morris International presents itself as a strong contender in the long-term investment arena. Although historically involved in traditional tobacco products, the company has taken proactive steps toward transitioning to alternative, smoke-free options. Given the addictive nature of nicotine, tobacco products generally maintain steady sales, even during economic downturns. However, Philip Morris’s strategic shift towards alternatives like heated tobacco and oral nicotine pouches differentiates it from its competitors.
With a market cap of $285 billion, Philip Morris shares have surged 97% over the past decade, outpacing peers such as Altria and British American Tobacco, which have seen minimal growth. Currently, smoke-free products account for 41% of the company’s sales, backed by a significant $16 billion acquisition of Swedish Match in 2022, which intensified its presence in the U.S. market.
The dividend yield for Philip Morris currently stands at 3.3%, considerably higher than the S&P 500 average of 1.14%. This robust payout reflects the company’s commitment to returning value to its shareholders, although share buybacks are currently paused due to costs associated with the Swedish Match acquisition.
Both Coca-Cola and Philip Morris International exemplify characteristics that could make them durable investments for those prioritizing income through dividends while also keeping an eye on long-term growth potential.
