The Smartest Dividend Stock to Buy With $10,000 Right Now
Key Points
A $10,000 capital outlay would generate $274 in annual passive income for shareholders in this business.
This company’s board of directors has an unmatched streak of raising dividend payouts.
This industry-leading business faces no threat of disruption, making it a safe stock for investors.
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Buying and holding dividend stocks might make sense for specific investors. These companies are usually mature and stable, which can reduce risk. They provide cash returns that shareholders can obtain without having to sell off their investments. The predictability of these opportunities can also be an enticing proposition.
Investors don't have to look far. The following business might be the smartest dividend stock to buy with $10,000 right now.
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This incredible track record is hard to overlook
You're probably a customer of this company that makes for such a great dividend stock. Coca-Cola (NYSE: KO) currently offers a quarterly dividend payout of $0.53, giving the shares a dividend yield of 2.74%. If you buy $10,000 worth of the stock (equal to roughly 129 shares), you'd be able to generate about $68.50 in passive income every quarter and $274 every year. That can be a meaningful sum.
In the future, though, this income stream will grow. 2026 was the 64th straight year that Coca-Cola's board of directors approved a dividend increase. The leadership team is committed to keeping its shareholder base happy.
"We are supportive of that trend continuing," CFO John Murphy said on the Q4 2025 earnings call highlighting how dividends remain a priority.
Investors should admire Coca-Cola's resilience
Coca-Cola's track record of raising dividends each year is impressive, particularly when you think just about the past decade. There was no shortage of disruptive events. The COVID-19 pandemic, supply chain bottlenecks, surging inflation, rising interest rates, and geopolitical turmoil did nothing to get in the way of the annual payouts continuing their climb. Investors can have confidence that this streak will hold up.
The company's resilience is a direct result of its business model. The ideal situation for companies to find durable success is to sell small, repeat purchases. This is why investors praise subscription businesses. They produce recurring revenue streams that make it easy for leadership teams to manage their operations.
Coca-Cola runs in a similar fashion, as its relatively low-cost products cater to a wide variety of tastes regardless of what position the economy is in. And this means there is stable demand, despite the inevitable swings that occur within the broader macro backdrop.
Coca-Cola owns more than 200 drink brands sold in more than 200 countries around the world. More than 2.2 billion servings are consumed every single day. The stranglehold that it has on the global non-alcoholic ready-to-drink market is not going to weaken anytime soon, if ever. This makes it one of the safest stocks to own, especially as technological advancements lead to widespread fears about disruptive forces.
Investors with $10,000 should look to Coca-Cola as a smart dividend play.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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