Prosper Junior Bakiny, The Motley Fool

Sat, May 24, 2025, 3:15 PM6 min read

• Coca-Cola's dividend track record shows a stable business that can perform well long-term.

• Costco's strategy, economic moat, and growth opportunities make its prospects attractive.

• 10 stocks we like better than Coca-Cola ›

Trump's trade policies have rocked broader equities. Though the president has paused much of his tariff agenda, the volatility it has caused left investors at least a bit worried about what will happen next. That's understandable, but it's essential to focus on the long game even in times like these. No matter what happens in the next few months, the stock market should produce competitive returns over many decades.

And to cash in on that, owning shares in companies that can perform well over the long run is essential. Two great examples are Coca-Cola (NYSE: KO) and Costco (NASDAQ: COST). For those who can spare $5,000 without hurting their emergency fund, here's why investing that money into these two corporations would be a great move.

Coca-Cola is handily beating the market so far this year despite the tariff problem. That's not that surprising. The consumer staples industry it belongs to tends to perform better than most during economic downturns. So, if a recession is on the way, which some believe is the case, investors perceive Coca-Cola as a safe haven, a place to put their money while withdrawing it from speculative or unprofitable stocks. And despite its strong performance this year, Coca-Cola's forward price-to-earnings (P/E) of 24.2 looks reasonable compared to the average of 22.2 for the industry.

Moreover, if Trump's trade plans survive his administration, Coca-Cola should handle tariffs just fine. It has a presence in most countries and typically does most of its manufacturing for each market locally; most of what it sells in the U.S. is made in the U.S. That means Coca-Cola will see a relatively minimal impact from tariffs compared to companies with significant manufacturing footprints abroad.

However, that only addresses how the company might perform in the short run, while the effects of the current administration's trade plans continue to be felt on Wall Street. What, exactly, makes it a stock worth owning forever? A critical aspect of Coca-Cola's business is the brand name it has built over many years. Few soft drink brands can measure up to the company's reach and influence. That also means few can battle Coca-Cola for shelf space in grocery stores.

The company's brand name grants it a significant advantage. Another important thing to consider is that Coca-Cola has a deep portfolio of products that has not remained static over time. The company adopts its strategy according to changing demands -- if it didn't, it might have gone out of business already, or at least, it would be far less successful today. Even if some of Coca-Cola's brands start seeing less demand -- which has happened before -- the company can adapt accordingly.