Coca-Cola Defensive Stock Could Protect Portfolios Amid Market Turmoil

Coca-Cola is considered a defensive stock, suitable for investors expecting a market pullback. Its dividend yield recently reached 2.4%, making it an attractive option for income-focused investors.

The company's performance over recent years has been impressive, with average annual returns of 11.98% over the past five years and 9.60% over the past ten years. However, the stock is currently trading at a P/E ratio of 25, slightly above its five-year average.

Assuming a more conservative 8% average annual gain, a $15,000 investment in Coca-Cola could grow to around $22,000 in five years. The company's dividend payout has been increasing, with a total of $2.10 per share annually, up from $1.84 in 2023 and $1.60 in 2019.