Here's How Many Shares of Coca-Cola You'd Need for $40,000 in Yearly Dividends
Key Points
Based on the current quarterly payout, investors would have to own 18,868 shares to make $40,000 in passive annual income
Coca-Cola's 64-year streak of hiking its dividend is surely going to continue well into the future, given the company’s strong competitive position and huge profits.
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Coca-Cola (NYSE: KO) has been crushing the overall market in 2026. As of Sept. 3, shares have climbed 26%. This performance is, surprisingly, ahead of all the "Magnificent Seven" stocks.
But the beverage stock's impressive gains isn't why it's in portfolios. Instead, it's because the business is highly regarded among passive income investors. The track record speaks for itself.
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Here's how many Coca-Cola shares you'd need to bring in $40,000 in yearly dividends.
Image source: The Motley Fool.
In February, the company's board of directors increased the quarterly dividend by 4% to $0.53. This was the 64th straight year that Coca-Cola implemented a payout hike. This makes it a Dividend King, a company that has raised its annual dividend payout for at least 50 consecutive years.
Each share pays $2.12 on an annualized basis. So investors would need to own 18,868 shares to generate $40,000 in annual dividends. Based on Coca-Cola's current stock price of $88.24, this amounts to an initial capital investment of nearly $1.7 million.
Coca-Cola's unbelievable streak highlights the leadership team's commitment to its shareholder base. Investors can have full confidence that the $40,000 yearly income stream will grow steadily. In the last decade, for instance, the quarterly dividend rose by 51%. Given the company's robust competitive position and huge profits, there's no reason its believe the prosperity won't endure.
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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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