To build a company that stands out, marketing experts all say one thing: “Branding is everything.” Although creating an iconic brand is easier said than done, once achieved, it can have remarkable benefits for a business.

Firms can have pricing power because of their brand’s prestige, even if their product isn’t better than the competition. This is true because brands can make people feel associated with something important. Other businesses also often want to align themselves with companies that consumers respect. In many cases, creating a successful brand goes hand in hand with creating a long-standing successful business.

A benefit of long-term business success is that companies have more ability to return capital to their shareholders. Below is a look at three iconic brands doing just that.

Coca-Cola: Beverage King’s Dividend Yield Approaching the 3% Mark

Perhaps no company in the world exemplifies the power of branding better than Coca-Cola NYSE: KO. Many studies over the years have had people blind taste-test Coca-Cola and Pepsi NASDAQ: PEP.

According to the University of South Carolina, participants tend to prefer the taste of Pepsi over Coke in these tests. However, Coke remains the dominant soda brand in the United States, with approximately twice the market share of Pepsi. Many say this is because of Coke’s strong branding. They believe that the packaging makes people think Coke tastes better.

In 2024, Coke had an adjusted gross margin of 61%, while Pepsi’s was 55%. This suggests that Coke may have some pricing power over Pepsi. However, it is a little difficult to say for sure based on this metric. Pepsi also sells snacks, while Coke almost exclusively deals in beverages, introducing some complications in this assessment.

Now, Coke is rewarding shareholders with a 5.2% dividend increase. The next quarterly dividend is payable on Apr. 1 to shareholders of record as of Mar. 14. This is the firm’s 63rd consecutive annual dividend increase. Based on its Mar. 4 closing price, the company has a strong indicated dividend yield of 2.9%.

Home Depot: Dividend Payments Are Getting an Improvement

The iconic American home-improvement store Home Depot NYSE: HD is also raising dividends. Although Home Depot’s brand isn’t as globally recognized as Coke, the dominance of this brand in the United States is undeniable.

The company operates mostly in the United States, with 86% of its stores located in the 50 states or U.S. territories. The rest of its stores are in Canada and Mexico. 

Home Depot’s U.S. dominance is highlighted by its market capitalization of around $380 billion, nearly three times larger than its nearest U.S. competitor, Lowe’s Companies NYSE: LOW.

Home Depot recently announced a significantly smaller dividend increase, but it is still worth talking about compared to Coke. Its dividend will rise by 2.2%, and it will now pay out an annual dividend of $9.20 per share. 

The next quarterly dividend will be payable on Mar. 27 to shareholders of record at the close of business on Mar. 13. The company also has a strong indicated dividend yield of 2.4% as of the Mar. 4 close.

Ferrari: Addressing the Need for Speed and Higher Dividends

Going overseas, one of the world’s most iconic carmakers, Ferrari NYSE: RACE, just announced a huge dividend increase. The company will increase its annual dividend by 22% to 2.99 euros per share.

This will apply to its shares traded on both the Euronext Milan (EMX) and the New York Stock Exchange (NYSE). Using a euro to U.S. dollar exchange rate of 1.08 USD to euros, this equates to $3.22 per share. Based on this, its dividend yield would be 0.7% on both the NYSE and EMX as of the Mar. 4 close. 

If approved by shareholders, the single annual dividend will be payable on May 6 to shareholders of record on Apr. 23.

Ferrari’s strong connection to Formula 1 racing helped shape its iconic brand. Its cars are famous for their combination of speed and maneuverability.

The Ferrari F1 racing team is the only one to have competed in every F1 season since the world championship began.

It may come as a surprise to some that, with a market capitalization of over $80 billion, the company is significantly more valuable than any of the Detroit Three U.S. carmaker stocks.

Before you consider Coca-Cola, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Coca-Cola wasn’t on the list.

While Coca-Cola currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Consumers are feeling the pinch from inflation every time they go to the grocery store. Money is a zero-sum game; as disposable income and buying power erodes, consumers are shifting funds for spending on discretionary items they want to spend on things they need. This is illustrated by the performance of the consumer discretionary sector falling when the consumer staples sector rises.

The “No Buy” trend of 2025 further accents this point. Here are two stocks that also embrace this shift as Americans spend on things they need over things they want.

Proctor & Gamble: Personal Hygiene and Cleaning Products Take Priority

Global consumer packaged products manufacturer Proctor & Gamble Co. NYSE: PG has a major market share in American households with a 98% penetration. When it comes to the term “household brands,”

Proctor & Gamble has the most recognized portfolio of brands in the country, including its most popular brands like Pampers, Tide, Crest, Downy, Gillette, Charmin, Febreze, Joy, Luvs, Bounty, Always, Olay, Old Spice and Herbal Essence. 

The market also recognizes this as reflected by the stock’s 3.69% year-to-date (YTD) performance compared to the 1.38% YTD S&P 500 performance as of Feb 28, 2025. PG stocks also pay a 2.32% dividend.

Baby, Feminine & Family Care Products Led Growth in Fiscal Q2

Proctor & Gamble’s products are categorized under five segments: Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care (BFFC). In the fourth quarter of 2024, the BFFC segment was the leading volume driver at 4% YoY growth and the leading net sales drive up 3% YoY.

Organic volume rose 4%, and organic sales rose 4%. Within the segment, Family Care organic sales increased by double digits, driven by strong volume growth. This segment includes brands like Bounty paper towels, Charmin toilet paper and Puffs tissues.

The Stock Surged 6% After Reporting Fiscal Q2 Earnings

All of the 2025 stock price gains occurred after Proctor & Gamble reported their Q4 2024 earnings. The company posted Q4 earnings-per-share (EPS) of $1.88 versus $1.86 consensus analyst estimates, for a 2-cent beat.

Revenues rose 2.1% year-over-year (YoY) to $21.88 billion, beating consensus estimates of $21.54 billion by $340 million.

Proctor & Gamble Reaffirmed Their 2025 Forecasts

The company forecasted the full-year 2025 EPS of $6.91 to $7.05 versus $6.94, but if going by the midpoint of $6.98, then it technically beats consensus estimates.

Revenue growth is expected to be between 2% and 4% YoY, equating to $85.72 to $87.40 billion versus $85.01 billion consensus estimates. Again, if compared with the midpoint of $86.56 billion, then it’s a $1.55 billion beat.

Coca-Cola: More Than Just Soda   

The Coca-Cola Co. NYSE: KO brand is one of the most recognized brands in the world, and it is recognized by 94% of the world’s population and 97% of soft drink consumers in the United States. The iconic brand is a symbol of American culture.

While iconic Coke and Diet Coke soft drinks take the spotlight, its portfolio includes over 500 brands and over 3,500 products, including Dasani waters, Fanta, Honest Kids, AHA sparkling waters, Fresca, Minute Maid juices, Powerade sports drinks, Sprite, Schweppes, vitaminwater, smartwater, Vita and Gold Peak teas among others.

Coca-Cola Only Owns Just the Beverages, Not Snacks

Unlike competitor PepsiCo Inc. NASDAQ: PEP, Coca-Cola doesn’t own food brands or products. Coca-Cola is strictly beverage, whereas Pepsi has diversified its products to include food and snacks.

Through its acquisition of Frito-Lay, well-known brands like Doritos, Fritos, Tostitos and Quaker Oats are all under the Pepsi umbrella. Coca-Cola not only stays but dominates in its lane. The average American drinks 403 Coca-Cola products a year, up from 399 in 2009.

Coca-Cola Is Still Growing Even After 132 Years

After 132 years, it’s hard to believe that the brand is still growing.

In fact, Coca-Cola sales grew 6.4% YoY in its fourth quarter of 2024 to $11.54 billion, beating consensus estimates for $10.68 billion by $860 million.

It earned 55 cents per share, which also beat consensus analyst estimates by 2 cents. 

Global case volume rose 2% YoY and 1% for 2024.

The company provided in-line guidance for 2025, with EPS growth expected between 2-3% YoY. As of Feb 28, 2025, the stock is up 14.38% YTD and even pays a 2.86% dividend yield.

Before you consider Coca-Cola, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Coca-Cola wasn’t on the list.

While Coca-Cola currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here