The Dow Jones Industrial Average (DJINDICES:$DOWI) index dropped 1.6% in February. Although some blue chip stocks slumped by double-digit percentages, 50% of its 30 constituents beat the index last month.
Coca-Cola (NYSE:KO) and Verizon Communications (NYSE:VZ) were the two top-performing Dow stocks in February, gaining 12.2% and 9.4%, respectively. Here's what propelled these stocks higher.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
1. Coca-Cola
Coca-Cola stock was the best-performing Dow stock in February, thanks to strong earnings. The beverage giant reported a 6.4% year-over-year growth in revenue for its fourth quarter. Organic revenue, which excludes the impact of acquisitions, divestitures, and currency fluctuations, surged 14%. Coca-Cola's operating margin grew to 23.5% from 21%, and earnings per share (EPS) rose by 12%.
For the full year, Coca-Cola reported a 3% and 12% growth in revenue and organic revenue, respectively. Although its free cash flow was cut in half to $4.7 billion because of tax litigation, Coca-Cola announced a quarterly dividend hike of 5.2% last month, marking its 63rd consecutive annual dividend hike.
Coca-Cola's dividend streak is one of the biggest reasons the Dividend King remains a popular stock.
2. Verizon
Verizon's strong subscriber growth in 2024 and its ongoing efforts to leverage artificial intelligence (AI) and open up new revenue streams gave the telecom stock legs in February.
Last month, Verizon launched AI Connect, a suite of products and solutions for businesses to manage AI workloads at scale. Verizon estimates a total addressable market of over $40 billion, and believes its expanding fiber and programmable network is well positioned to fulfill secure network connectivity needs of AI data centers.
In 2024, Verizon added nearly 2.5 million postpaid mobility and broadband subscribers in total, grew its total wireless service revenue by 3%, generated $19.8 billion in free cash flow, and raised its dividend for the 18th consecutive year.
Although Verizon expects slightly slower wireless service revenue growth of 2% to 2.8% and FCF of $18 billion for 2025, investors continue to bet on its AI moves and a big dividend yield of 6.2%.
Should you invest $1,000 in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Verizon Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $721,394!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of March 24, 2025
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
/Quantum%20Computing/Image%20by%20Funtap%20via%20Shutterstock.jpg)
/A%20Palantir%20office%20building%20in%20Tokyo_%20Image%20by%20Hiroshi-Mori-Stock%20via%20Shutterstock_.jpg)
/Nike%2C%20Inc_%20shopping%20by-%20hapabapa%20via%20iStock.jpg)
/Quantum%20Computing/A%20concept%20image%20with%20a%20brain%20on%20top%20of%20a%20blue%20circuit%20board_%20Image%20by%20Gorodenkoff%20via%20Shutterstock_.jpg)
