Congressman Ro Khanna, a Democrat from California, is a busy person. As a member of the House of Representatives, he has worked on important issues ranging from climate change, foreign policy, and much more.

Outside of his political duties, Khanna is the most active stock investor in Congress and made over 4,200 trades in 2023. In the last year, Khanna reported more than a dozen trades in one of Warren Buffett's longest-tenured positions: Coca-Cola (KO 0.26%).

According to data compiled by Capitol Trades, buying activity in the iconic beverage stock tied to Khanna outweighed sells by a ratio of 2:1. Importantly, all of the trades reported by Khanna listed his children or spouse as the owner.

Here's a look at why Coca-Cola is a terrific opportunity right now.

NYSE: KO

Coca-Cola
Today's Change
(0.26%) $0.18
Current Price
$69.05
Arrow-Thin-Down
KO

Key Data Points

Market Cap
$297B
Day's Range
$68.42 - $69.37
52wk Range
$57.93 - $73.53
Volume
15,569,122
Avg Vol
17,672,514
Gross Margin
62.97%
Dividend Yield
2.81%

Coca-Cola is a cash-flow machine

Coca-Cola is home to some of the world's most iconic brands, from its name-sake soda to rehydration drinks such as Vitaminwater. It even has an ownership stake in energy-drink company Monster Beverage.

The company's broad portfolio of beverages spans across the globe, providing Coca-Cola with an enormous ability to reach consumers across many demographics.

While Coca-Cola's revenue growth may not be commensurate to that of a high-flying technology business, the company runs an incredibly efficient operation that helps generate strong and consistent cash flow.

KO Revenue (Quarterly) Chart

KO Revenue (Quarterly) data by YCharts.

Although robust free cash flow is a positive, how Coca-Cola deploys these excess profits is encouraging.

Two cups of soda on a table

Image source: Getty Images.

A rich history of rewarding shareholders

One of the ways Coca-Cola entices shareholders is through its generous dividend program. The company is a member of the Dividend Kings -- an exclusive club of companies that have raised their dividends for at least 50 consecutive years.

KO Dividend Chart

KO Dividend data by YCharts.

While the dividend alone isn't reason enough to buy Coca-Cola stock, the company's long-term commitment to rewarding shareholders makes it a compelling option. However, in addition to the dividend, Coca-Cola recently shed some light on other ways it's reinvesting cash.

These moves are the most intriguing about what the future could hold for Coca-Cola.

Why Coca-Cola has a bright future

In late April, Microsoft announced that it inked a five-year deal worth $1.1 billion with Coca-Cola to help bolster the beverage-giant's artificial intelligence (AI) strategy. Right off the bat, I'll make it clear that I do not see Coca-Cola as an AI opportunity. The company is very much a consumer packaged-goods business. However, the bigger idea here is that investors can see that applications in AI exist far beyond the technology sector.

By leveraging Microsoft's Azure cloud computing platform and applications from OpenAI, Coca-Cola should be able to gain data-driven insights into areas including bottling, supply chain logistics, and warehouse operations. Moreover, AI has the potential to help Coca-Cola spot trends in consumer preferences, which can help with marketing campaigns and new-product innovation.

Right now, Coca-Cola trades at a price-to-earnings (P/E) ratio of 24.9 -- nearly identical to that of the S&P 500. By comparison, the company's biggest rival, PepsiCo, trades at a slightly richer P/E of 26.4.

I think investors may be overlooking the potential of Coca-Cola. Sure, the business itself may not be an electrifying headline grabber, but the company's steady performance in the long run shouldn't be overlooked.

Coca-Cola is an established blue chip opportunity with a proven ability to put shareholder value first. Moreover, as AI grows in sectors outside of technology, I'm optimistic that the beverage company is making savvy choices to differentiate itself from its competitors and enter a new chapter. Coca-Cola's best days are ahead, and now's a great time for investors to scoop up shares while also benefiting from some reliable dividend income.