Coca-Cola Is Outperforming Broadcom and Every "Magnificent Seven" Stock in 2026. Is It Still a Top Dividend Stock to Buy in September?
This venerable dividend stock has outperformed the AI trade this year, but key reasons behind Coca-Cola's improved results could normalize in the coming quarters.
Overview
Since the first of January, Coca-Cola (NYSE: KO) has surged by around 26%. Not only does this represent outperformance compared to the S&P 500, which is up by around 13.6% year to date, but shares in this venerable consumer staples stock have also outperformed Broadcom and all "Magnificent Seven" stocks.
In terms of price appreciation, the only one that comes close is Nvidia, which is up 23.5% year to date. Apple and Amazon are up by double digits, but Broadcom and Microsoft are up by just single-digits, with Alphabet and Meta Platforms each declining by around 6.5% since January. Tesla, the worst performer, is down over 21% this year.
Details
Yet while it's been an amazing turn of events for investors in blue chip dividend stocks, the question now is whether it's wiser to let it ride on Coca-Cola, or to take profit. While there's substance behind its strong 2026 price performance, the stock may have surged too far, too fast.
Source
Originally published at www.fool.com.