Coca-Cola and Altria Outshine PepsiCo as Dividend Kings

Coca-Cola and Altria are two Dividend Kings that investors can consider buying in this tumultuous market, while avoiding PepsiCo due to its asset-heavy business model.

Coca-Cola, with a history of raising dividends for 64 consecutive years, has diversified its portfolio beyond soft drinks to include fruit juices, teas, sports drinks, energy drinks, bottled water, dairy products, coffee, and even alcoholic beverages. Its asset-light business model enables it to maintain high margins and generate ample cash to fund its dividends.

Altria, the largest tobacco company in the US, has been diversifying its business away from cigarettes by selling more smoke-free products, including e-cigarettes, nicotine pouches, and snus. By 2028, these products are expected to bring in at least $5 billion in revenue, nearly a quarter of its projected sales.

PepsiCo, on the other hand, operates a fragmented business model with high capital expenses due to bottling and distributing a large portion of its own drinks. Its packaged foods business is also struggling with stiff competition from healthier and private label brands.