This global food and beverage company sells snacks and drinks in more than 200 countries, and its stock carries a beta of just 0.37, meaning its price barely moves in step with the broader market. That kind of steadiness is exactly what income focused investors want when they’re protecting a retirement nest egg. The business spans savory snacks and a wide beverage lineup covering colas, water, sports drinks and energy drinks, which means several separate streams of cash flow that don’t all rise and fall together. International markets are growing faster than the home market right now, while domestic demand has cooled under the weight of higher fuel prices and a more cautious shopper. Even with that uneven picture, the business still throws off enough consistent cash to support a dividend that has increased every year for 55 straight years.
Management is leaning into smaller portion sizes, lower sugar recipes and functional hydration drinks as shoppers shift toward healthier choices, while also folding in newer brands acquired to reach growth outside the legacy lineup. Commodity costs are expected to rise in the back half of the year, particularly overseas, and a heavier tax bill is coming in the next quarter. None of that changes the basic setup here, a company built on daily household staples that people keep buying no matter what the economy is doing.
This week, the Dividend Protection Stocks Portfolio increased its position in this stock, adding to an existing allocation rather than starting a new one. A business with a multi-decade record of raising its payout, spread across snacks and beverages, fits cleanly into a strategy focused on capital preservation. The move reinforces a portfolio designed to limit price swings for retirees while still delivering steady, growing income.
