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Zacks Investment Ideas feature highlights: Coca-Cola, Caterpillar and McDonald's

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For Immediate Release

Chicago, IL – July 14, 2025– Today, Zacks Investment Ideas feature highlights Coca-Cola (KO - Free Report) , Caterpillar (CAT - Free Report) and McDonald's (MCD - Free Report) .

This 3-Stock Portfolio Provides Monthly Income

While most stocks pay quarterly dividends, investors can still construct a portfolio that allows them to get paid monthly.

For example, the first stock pays dividends in January, April, July, and October. The second stock pays out in February, May, August, and November. And finally, the third stock will pay its dividend in March, June, September, and December.

So, investors can reap steady monthly paydays with just a little positioning.

A combination of Coca-Cola, Caterpillar and McDonald's shares would provide precisely the blend needed for this portfolio. Let's take a closer look at each one.

Coca-Cola Gains Market Share

Shares were up nicely following its latest set of better-than-expected results, with the stock also sporting a favorable Zacks Rank #2 (Buy).

Concerning headline figures in its latest release, adjusted EPS grew 5% to $0.77, with the company also gaining value share in total nonalcoholic ready-to-drink (NARTD) beverages. The company is also a member of the elite Dividend Aristocrats group, further underpinning its dividend reliability.

Caterpillar Keeps Paying

Caterpillar is the world's largest construction equipment manufacturer. We see its iconic yellow machines at nearly every construction site.

Like KO, the company is a member of the elite Dividend Aristocrats group, with shares currently yielding 1.4% annually. While the current yield may be on the lower end, Caterpillar's 7.9% five-year annualized dividend growth rate picks up the slack.

McDonald's Keeps Growing

We're all familiar with the restaurant titan McDonald's, seeing those golden arches at seemingly every stop. Analysts have modestly upped their EPS expectations across the board over recent months, a positive sign concerning near-term share performance.

MCD shares presently yield 2.5% annually paired with a payout ratio sitting at 61% of the company's earnings. Dividend growth has been solid, with MCD sporting a 8.4% five-year annualized dividend growth rate.

Bottom Line

Investors love dividends, as they provide a nice buffer against the impact of drawdowns in other positions and provide a passive income stream.

And while most companies pay their dividends on a quarterly basis, investors can construct a portfolio that allows for monthly payouts with just a bit of positioning.

For those interested in this type of portfolio, the combination of all three stocks above would provide the necessary blend needed.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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Caterpillar Inc. (CAT) - free report >>

CocaCola Company (The) (KO) - free report >>

McDonald's Corporation (MCD) - free report >>

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