Jim Cramer Says Buy Coca-Cola. Is Its Dividend Still Worth It After a 35% Rally?

Oct 29, 2026
jim-cramer-says-buy-coca-cola.-is-its-dividend-still-worth-it-after-a-35%-rally?

Chris Lange

5 min read

Quick Read

  • Coca-Cola beat Q3 estimates with $0.91 adjusted EPS and raised full-year free cash flow guidance to at least $13 billion, its 6th consecutive EPS beat.

  • Cramer said he ‘wouldn’t shoot Broadcom’ but would buy Coca-Cola, endorsing both stocks when asked to choose between AVGO and KO.

  • KO trades at roughly 30 times trailing earnings with a ~2.3% yield, as shares have surged 35% year to date, leaving new buyers at a premium.

  • Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Coca-Cola Company didn’t make the cut. Enter your email to see the names that beat KO. The report is free. Enter your email and see if any of your stocks made the cut.

Jim Cramer backed Coca-Cola (NYSE:KO) on Wednesday night’s Mad Money. In the lightning round, a caller asked him to choose between Broadcom (NASDAQ:AVGO) and Coca-Cola. Cramer answered: “Broadcom has been one of the greatest performers of all time, but so is Coca-Cola. I wouldn’t shoot Broadcom, and I would buy Coca-Cola.”

A can, tin of fresh Coca Cola drink with brick wall backround. Coca-Cola company is the most popular brand in the world.

zedspider / Shutterstock.com

The call came one day after a strong earnings report. Coca-Cola shares have also risen 34.76% year to date, so retirees face a real question. Does the dividend still justify buying at $92.41?

KO price target

KO Price Target — 24/7 Wall St.

A Raised Outlook Backs Up Cramer’s Call

Coca-Cola reported third-quarter results on October 27, 2026. Adjusted EPS came in at $0.91, above the $0.88 estimate. That made it the company’s 6th consecutive EPS beat. Revenue reached $13.38 billion, ahead of the $12.93 billion estimate and up 7.4% year over year. Global unit case volume rose 5%, Coca-Cola Zero Sugar grew 16%, and comparable operating margin expanded to 32.9% from 31.9%.

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KO earnings explorer

KO Earnings Explorer — 24/7 Wall St.

Management also raised full-year guidance. Comparable EPS growth is now at least 11% (prior 9-10%), and free cash flow is expected to reach at least $13.0 billion (prior ~$12.4 billion), according to the earnings release filed with the SEC. CEO Henrique Braun said, “Our results this quarter demonstrate our system’s sustained momentum, giving us confidence in our updated full-year guidance.”

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