Dividend Aristocrats have proven to be dependable in volatile markets. And as investors seek ways to hedge their portfolios against an anticipated market correction, dividend aristocrats in the consumer products industry Coca-Cola (KO) and Colgate-Palmolive (CL) could attract significant attention. But which of these stocks is a better buy now? Let’s find out.The Coca-Cola Company (NYSE:KO) in Atlanta, Ga., and Colgate-Palmolive Company (NYSE:CL) in New York City are two prominent players in the consumer products industry. KO owns or licenses, and markets beverage concentrates, finished sparkling soft-drinks brands, energy drinks, dairy, and syrups to fountain retailers such as restaurants and convenience stores. It operates through independent bottling partners, distributors, wholesalers, retailers, and bottling and distribution operators. In comparison, CL sells consumer products manufactured under oral, personal, homecare, and pet nutrition segments. It markets and sells its products to various retailers, wholesalers, e-commerce, and distributors.
Because factors including the resurgence of COVID-19 cases, high inflation, and geopolitical tensions, have led to significant market volatility, and many analysts predict a correction in the near term, investors are seeking ways to hedge their portfolios against such market movements. The ability to withstand market volatility thanks to near inelastic demand for products and consistent increases in dividends makes dividend aristocrats KO and CL well-positioned to attract significant investor attention.
While CL has declined 6% in price over the past three months, KO has advanced marginally. KO is a clear winner with 7.2% price gains versus CL’s marginal returns in terms of their past year’s performance. But which of these stocks is a better pick now? Let’s find out.