Increase Holdings in These 2 Dow Stocks Come August
In the second quarter of 2025, both Coca-Cola and American Express demonstrated resilience amidst economic uncertainties, showcasing their potential as safe investment options.
Coca-Cola reported a 12% year-over-year increase in revenue, with organic revenue, or sales from existing brands, soaring by 16%. The company's earnings per share (EPS) slipped 28% to $0.44, but a more accurate comparison, excluding one-time items, revealed a 4% increase to $0.70.
Despite a higher tax rate and currency headwinds, Coca-Cola gained value share for the seventeenth consecutive quarter. The company's growth was driven by strong performances in products like Coca-Cola Zero Sugar and Diet Coke, particularly in the Latin America and EMEA regions. Coca-Cola continues to invest in brand marketing, pricing strategies, and digital customer platforms to maintain its market position.
Coca-Cola currently holds 14% of the market share in developed markets and only 6% in developing markets. The company has successfully raised prices on its products due to customer willingness to pay, and it is a Dividend King with a dividend yield of 2.9%. It is considered an excellent stock pick to shore up a portfolio.
American Express, on the other hand, posted record Q2 2025 revenue of $17.9 billion, a 9% year-over-year increase. The growth was driven by growth in total Card Member spending, especially among affluent millennials and Gen Z consumers. Despite rising expenses from reinvesting in technology and premium card benefits, Amex reaffirmed an expected annual revenue growth of 8%–10% and full-year earnings per share between $15-$15.50.
Amex's customer base is characterized by its affluence, and the steady demand for its premium products indicates its potential durability even in uncertain economic conditions. The stock has delivered a 244% total return over the past five years and remains a top holding in Warren Buffett’s Berkshire Hathaway portfolio.
However, investors should note Amex’s rising costs linked to premium benefits, and Coca-Cola’s volume challenges in some markets, which suggest some sensitivity to economic pressures.
Both companies exhibit characteristics of safe investments during challenging economic periods. Coca-Cola's resilient global brand and consistent value share gains, coupled with American Express's affluent customer base and steady premium product demand, make them attractive options for investors seeking stability in a difficult economy. Coca-Cola's drink categories are growing at a compound annual rate of 4% to 5%, and the company has more than 1,500 initiatives planned for 2022, indicating its commitment to ongoing growth.
[1] Source: American Express Q2 2025 Earnings Release [2] Source: Berkshire Hathaway 2024 Annual Report [3] Source: American Express Q2 2025 Earnings Call Transcript [4] Source: Coca-Cola Q2 2025 Earnings Release
In the face of uncertainties, investors might consider investing in Coca-Cola or American Express as potential safe options, given their strong financial performances and resilient nature. To augment their portfolios, some might even consider allocating dollars from their savings, a form of money, to these stocks in the sports of finance. As crucial economic indicators, the continued growth of Coca-Cola's revenue and the steady demand for American Express's premium products could weather potential economic downturns.
