UBS has named Coca-Cola its top pick in the beverage, household and personal-care group, positioning the company as a preferred defensive trade as rising bond yields and falling equities shake markets. The bank highlighted Coca-Cola's quarterly dividend of $0.53 per share, which translates into a roughly 2.39% yield at current prices, and argued that the stock's premium relative to history is warranted given its earnings visibility and upside, even after a nearly 30% rally this year. Coca-Cola reported second-quarter revenue of $13.4 billion, up 7% from a year earlier, while organic revenue increased 6%, global unit-case volume rose 5%, and comparable earnings per share climbed 11% to $0.97. Comparable operating margin also expanded to 35.6% from 34.7%. The company raised its 2026 outlook, now expecting organic revenue growth of about 5% and comparable EPS growth of 9% to 10%, and forecasts approximately $12.4 billion of free cash flow for the year.
The Coca-Cola CompanyUBS names Coca-Cola its top defensive pick in the beverage group, citing warranted premium valuation and earnings visibility.
Coca-Cola Europacific Partners PLC
UBS Group AG