Coca-Cola currently pays a quarterly dividend of $0.53, equating to $2.12 on an annualized basis.
The company’s strong brand, durable demand, and huge profits make it an income investor’s dream.
Coca-Cola (NYSE: KO) is ubiquitous. It has a presence in 200 countries and territories. And a jaw-dropping 2.2 billion servings of its products are consumed every single day.
While the beverage stock doesn't stand out for its capital appreciation, it can be a compelling portfolio addition for passive-income investors. Here's how many shares of Coca-Cola you'd need for $10,000 in yearly dividends.
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Coca-Cola pays an annualized dividend of $2.12 per share. This means investors need to own 4,717 shares to generate $10,000 in yearly passive income. Based on the current stock price, you'd need more than $414,000 to buy that many shares.
Without question, this is one of the best dividend stocks that investors can buy. Coca-Cola has raised its quarterly dividend payout for 64 straight years, making it a Dividend King, a designation for companies that have raised dividends for 50 or more consecutive years.
Only companies that operate from a position of incredible competitive strength can develop a track record like that. Coca-Cola possesses one of the world's most recognizable brands, supporting its wide economic moat. It sees durable demand that doesn't fluctuate much with macro trends, given that it deals in small, repeat purchases.
And it rakes in tremendous profits that easily fund the dividends. Management expects the business to report $12.4 billion in free cash flow in 2026. Coca-Cola is a passive income investor's dream.
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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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.