Coca-Cola: You've Got to Look at This One

At the time of this writing, Coke is trading at roughly $51. It's weak on the day. The business pays a quarterly dividend of 44 cents per share. This translates to an annual yield of 3.4%.

Coke at a 3.4% yield isn't bad. But could it get better? Yes, I believe so. The 52-week low on the shares is $47.18. The 52-week high is $59.45. My read of the chart says that the stock will most likely go below $50 and probably get very close to the 52-week low at the very least. My colleague Mark Fightmaster also says that the technicals in this case aren't so hot.

Sure, Coke is considered a defensive stock, but I acknowledge that in the kind of market we're in, everything can get slammed. There's simply nothing to be done about it; no preventive measure exists.

But if you have cash on the sidelines waiting for a new long-term position, let me say I like the current dividend yield on the beverage giant and would suggest you place this on your list of potential buys. And if you are trading and want a more comfortable stock to be in (maybe that's a better term for defensive stocks -- comfort stocks, since you might be comfortable adding to them if they go down in price in a volatile environment), this idea may be one to evaluate.

Disclosure: I own Coke; positions can change without notice.