Coca-Cola (KO 0.48%) is about as much of a blue-chip stock as you'll find.

The company has been a leader in the beverage industry for a century, and it retains that status today. In addition to its namesake brand, Coca-Cola also owns a wide range of other soft drink products, ranging from soda to iced tea to energy drinks, and it even branched out into restaurants for the first time with its 2019 acquisition of the Costa Coffee chain.

Coca-Cola is known as a recession-proof dividend stock that's capable of delivering steady growth over the long term, and its latest earnings report indicated that its reputation remains intact.

Unit case volume rose 2% year over year in the quarter, driving revenue up 6%, and adjusted earnings per share rose 12%, benefiting from limited edition flavors and price hikes.

The report was strong enough for one Wall Street analyst to take notice and upgrade their rating on the stock.

Image source: Getty Images.

Erste Group upgrades Coca-Cola

Erste Group upgraded Coca-Cola from hold to buy. Analyst Stephan Lingnau noted that Coke's profitability is higher than that of its competitors, based on metrics like operating margin and return on equity. He's also bullish on the impact of new products like probiotic lemonades, which he believes will help drive the company's revenue growth.

Is Coca-Cola a buy?

There's no question that Coca-Cola is executing well, and the company seems to have put earlier concerns about stalling growth behind it. The stock has climbed about 17% in the past year and is less than 5% shy of its all-time high as of this writing.

That also means Coca-Cola stock is expensive with a price-to-earnings ratio of 29. Its upside potential might seem limited here, but this is a Dividend King that offers a 2.9% yield. And it's likely to remain the leader in the beverage industry for another generation.

Stocks like that tend to trade at a premium. For investors seeking a stable, generous dividend, Coca-Cola looks like a good bet.