Coca-Cola Europacific Partners: A Hidden Gem in the Beverage Industry

Coca-Cola Europacific Partners, the largest independent Coca-Cola bottler in the world by revenue, may be undervalued as it pulls back from its 52-week high. The stock has a dividend yield of about 2%, but this is more than quadruple that of the Nasdaq-100 index.

The company's ties to Coca-Cola are significant, with 'big Coke' owning around 19% of Europacific Partners. As a result, the bottler benefits from its relationship and has been able to pay dividends for over a decade.

The dividend is considered extremely safe, with a payout ratio of just 34%. This implies there's room for growth and the dividend isn't a burden on the company. Additionally, Coca-Cola Europacific Partners is a dedicated buyer of its own shares, which lifts earnings per share while decreasing the number of shares on which dividends must be paid.