Should You Buy Coca-Cola Stock Before July 28?

Coca-Cola (NYSE: KO) is due to report its second-quarter earnings on the morning of July 28. There are a few good reasons investors should consider buying the stock in advance, even though it recently hit an all-time high. Let's have a look.

The beverage company has exceeded earnings expectations for four consecutive quarters, and while Coca-Cola isn't shattering any growth records, it remains consistent.

Coca-Cola investors are also rewarded on the income side. The company has raised its dividend for 64 consecutive years, making it a true Dividend King -- a company that has raised its dividend for at least 50 consecutive years. Right now, the stock is yielding about 2.5%. The company currently pays $0.53 per share quarterly.

Coca-Cola is an asset-light company, which helps it maintain strong free cash flow. The company reported nearly $2 billion in free cash flow last quarter.

Risks to consider

Coca-Cola is not immune to inflation and tariffs, and rising costs have a real impact.

The stock also trades at a premium to many peers, with its current forward P/E ratio at about 25. The stock has risen more than 18% year to date as of this writing.

What to watch on July 28

Still, Coca-Cola remains a steadfast behemoth with excellent fundamentals. With a new CEO at the helm this year, Coca-Cola is focusing on innovation and technology to further drive growth.

There may be some short-term volatility due to macroeconomic conditions, but buying Coca-Cola ahead of its next earnings release and holding for years remains a good move for those who like a steady ship that delivers reliable income.

Catie Hogan has positions in Coca-Cola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.