Oil Prices Hit $100: Why Coca-Cola and P&G Are a Safe Haven

Coca-Cola and Procter & Gamble stand out as rock-solid dividend stocks despite surging oil prices in September. With decades of consistent dividend growth, these consumer staples can weather any economic downturn.

Coca-Cola has raised its dividend for over 64 years, backed by a massive beverage portfolio with dozens of brands. It generated $14 billion in net income on $50 billion of revenue over the past year. The company pays a quarterly dividend of $0.53, or $2.12 annualized, which is well covered with a payout ratio of 62%.

Coca-Cola's brand power and marketing execution have helped it consistently grow unit case volumes, posting an 11% increase in comparable earnings over the year-ago quarter. Analysts expect its earnings to grow about 7% annually, supporting further dividend increases.

Procter & Gamble is another top consumer staple, offering everyday essentials people buy year-round. Its portfolio includes Tide, Pampers, Gillette, Oral-B, and other recognizable brands that collectively generate $16 billion in net income on $87 billion of annual sales. It has paid a growing dividend for 70 consecutive years.

P&G's quarterly dividend is $1.0885, or $4.35 annualized, which leaves room to sustain the dividend and continue growing it even in a weak earnings year. Management believes improved execution can lift performance as pricing and productivity initiatives flow through results.