Shares of Coca-Cola (KO 0.68%) stock gained 11% in July according to data provided by S&P Global Market Intelligence. There wasn't any important news, but investors are confident in Coca-Cola as it powers through inflation.

The biggest beverage brand in the world

Coca-Cola reported strong earnings in the 2024 first quarter, and investors are doubling down on the investing thesis. It has one of the most recognizable brands in the world and incredible pricing power, and it has come up with innovative ways to modify product sizes and pad prices without turning off buyers. As the largest beverage company in the world, with more than $46 billion in trailing-12-month sales, every little bit of a price increase can show up in a big way.

That doesn't mean it isn't feeling any inflationary pressure. Sales growth trickled to 3% year over year, but it reported increases in earnings per share (EPS) and an expansion in comparable operating margin. It also gained market share in its core non-alcoholic, ready-to-drink categories.

The market gave the outlook a thumbs up. Management raised the guidance for organic revenue from 7% at the high to 9% at the high, and comparable EPS from a high of 10% to a high of 13%.

It's leveraging its scale to distribute beverages with as much cost efficiency as possible while working within local markets to pinpoint needs and meet them. That includes bigger pricing changes in areas where inflation is especially high.

The Warren Buffett favorite

Coca-Cola releases second-quarter earnings at the end of the month, and investors are preparing for good news. Coca-Cola is about to announce a momentous update. Many investors may not be aware that its annual revenue is still below levels from a decade ago. But it should finally surpass those levels with a strong showing in the second quarter.

Coca-Cola is one of Warren Buffett's favorite stocks, and he touts its excellent dividend as one of the reasons. Management has paid and annually raised the dividend through thick and through thin for 62 years, making Coca-Cola a Dividend King with one of the longest -- and most reliable -- track records. It's a positive cycle of creating brands customers love, bringing in cash, and paying it out to shareholders. The dividend yields 3% at the current price, which is where it typically falls out, and investors can expect it to keep paying and raising the dividend for the foreseeable future.