Coca-Cola (NYSE: KO) shares have risen 20% over the past 12 months and are now trading at record levels. Investors have been buying up shares due to the company’s steady growth in an inflationary environment and expectations of interest rate cuts, which have made its dividends more attractive.

Despite declining soda consumption in developed countries, Coca-Cola continues to expand its product range, adding fruit juices, teas, water, sports drinks, and alcoholic beverages. This has helped the company increase organic sales by 16% in both 2021 and 2022, and another 13% in 2023.

While Coca-Cola’s shares appear to be a reliable investment due to a 2.7% dividend yield and its status as a “Dividend King” with a 62-year history of increasing payouts, they may be overvalued given their slower growth compared to the broader market. Therefore, it might be wise to hold the shares but not rush to buy more.