Coca-Cola's 25% Surge Leaves Magnificent Seven in the Dust

Coca-Cola's stock price has surged over 25% this year, outperforming all seven stocks in the 'Magnificent Seven' group. This impressive performance is a result of sector rotation, as investors shift their portfolios from tech giants with large capital expenditure budgets to defensive sectors like beverages.

The company's dividend growth streak reached an astonishing 64 consecutive years in February this year, maintaining its position among the Dividend Kings, companies with 50 or more annual dividend increases. Despite a 4% dividend raise earlier this year, Coca-Cola's yield has compressed to under 2.5%, still significantly higher than the Magnificent Seven stocks.

The beverage giant is having a strong year, with revenues growing 7% in the second quarter and earnings per share jumping 16%. However, its long-term growth ambition remains unchanged at 4%-6% annual organic revenue growth and 7%-9% annual earnings-per-share growth, slower than the tech giants.