The last few weeks have been tough for investors. Although stock prices have risen since last week’s low, S&P500 is still well below its July high. It’s also possible that the market will hit a deeper low before all is said and done.

However, not all stocks are on the defensive. A handful of stocks are trading at or near record highs because investors know these few names offer something most other stocks currently don’t — relative safety — and so they’re piling into such companies just in case the recent market weakness is an omen.

Coca-Cola (NYSE:KO) is one of those names. And I’m buying more of it despite its recent surge. Here’s why you might want to do the same.

Coca-Cola is the epitome of resilience

Coca-Cola is the world’s most famous beverage company. In addition to the soft drink of the same name, the company owns brands such as Minute Maid juice, Gold Peak tea, Dasani water and the sports drink Powerade, to name just a few.

But it’s not quite the company you think it is. Although it used to bottle much of its own drinks, it has increasingly delegated this to outside bottlers who buy flavored syrups from Coca-Cola itself. While this ultimately means less revenue, it also means higher margins. Most importantly, this shift has freed up the company to focus on what it does best: marketing.

But why is the stock reaching record highs while most others are on the defensive? And more importantly, can this uptrend continue?

The answer to the first question: We may be at the beginning of a phase of economic lethargy that is actually beneficial for companies.

The unemployment rate in the country is slowly beginning to rise and, at the global level, the International Monetary Fund is reducing its expectations for economic growth in the near future.

However, consumers are unlikely to give up their favorite beverages just because money is tighter. In fact, it’s questionable whether people will opt for these simpler, less expensive treats. more than they normally would if they were not spending more on expensive purchases. (For comparison: Despite the subprime crisis in 2008 and the recession that followed, Coca-Cola was able to increase its sales by 11%, with a 5% increase in sales.)

As for the second question, yes, there is room and reason to expect further progress in this stock, even if we see some profit-taking from here. It is still a bit below the average analyst price target of $70.73. Most of those analysts also continue to rate it as a Strong Buy.

The story continues

However, that is still not the main reason why I am currently double-investing in Coca-Cola.

A good time to become income-oriented

There’s never a bad time to own Coca-Cola. It’s a brand that consumers know and love, and management knows the beverage business too. If nothing else, it probably won’t hurt your long-term portfolio.

My current interest, however, is much more specific. In anticipation of the economic headwinds mentioned above, I want to increase my exposure to dividend-paying stocks. There are arguably none better than Coca-Cola stock.

The dividend yield of 2.8% is not exactly a looker. Other holdings can generate higher returns, but you will not find a more reliable and higher-yielding choice with a comparable risk profile. The stock’s beta, which measures volatility, is one of the lowest at 0.59 (the lower this value, the lower the volatility).

Consumers’ brand loyalty even in tough times means they will continue to buy Coke, Minute Maid, Gold Peak, etc., and the company will continue to convert about a quarter of its revenue into net income. In return, it will continue to earn more than enough to fully fund its future dividends. Of the $2.79 per share Coke earned over the last four quarters, only $1.91 was eaten up by dividend payments. That’s a comfortable margin.

The highlight: Coca-Cola is not only a company that is constantly increasing its dividend, but has also increased its dividend for 62 years in a row. The company is unlikely to let this streak of success break now.

You should also know that I won’t necessarily reinvest these dividends in more Coca-Cola shares. I might instead build up a larger cash stash so I can go shopping in the event of a major price drop.

It seals the deal

Am I over-preparing for an economy that may never take shape? Possibly. But I’d rather be unnecessarily defensive on a quality company like Coca-Cola than buy too much aggressive stuff and end up regretting it. Risk management is, after all, an important part of being a successful investor.

There is also the simpler optimistic argument that Coca-Cola is a quality stock regardless of its past or future. The company has a long-term track record of sales and earnings that reflects its dividend history.

So I’d say don’t think too much about it or worry about the stock’s recent extreme uptrend. Great stocks have a funny habit of posting gains that seem impossible at the time.

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James Brumley owns shares of Coca-Cola. The Motley Fool does not own any of the stocks mentioned. The Motley Fool has a disclosure policy.

Coca-Cola shares hit new high. That’s why I’m betting even more. was originally published by The Motley Fool