The present invention relates to strategies by which one or more phenolic resins are provided in aqueous phenolic dispersions in a manner so that the resultant aqueous phenolic dispersions are more easily combined with water-based latex compositions. The principles of the present invention make it much easier to formulate water-based latex compositions in which substantial phenolic resin content can be stably dispersed for long periods of time. In one aspect, the present invention relates to a method of making a coating composition, comprising a) providing an inverted aqueous dispersion comprising i) at least one polymer having one or more polar, hydrophilic groups; and ii) at least one phenolic resin; b) providing a latex composition; and c) blending the latex composition with the aqueous dispersion to form the coating composition.