What Is One of the Best Dividend Stocks to Buy With $10,000?
Key Points
Coca-Cola has increased its dividend for 64 consecutive years.
It has a high dividend yield supported by earnings.
The company has navigated shifting consumer preferences well as it continues to gain market share.
- 10 stocks we like better than Coca-Cola ›
If you're looking for consistent, dependable dividend payers that also offer a high upfront yield with the potential to grow over time, look no further than one of Warren Buffett's all-time favorites, Coca-Cola (NYSE: KO).
Coca-Cola just announced its 64th consecutive annual dividend increase. At its current payout, a $10,000 investment can generate about $262 in dividends over the next year, with the potential for growth. Coke's consistent sales, earnings, and dividend increases make it one of the best dividend stocks to buy in 2026.
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The company just raised its quarterly dividend by 3.9% to $0.53 per share, bringing its forward dividend yield to 2.62%. This full-year payout of $2.12 is well supported by earnings, with analysts expecting the company to earn $3.23 per share for 2026.
Despite persistently high prices for everyday goods, consumers continue to buy Coca-Cola products. The company posted another solid year of sales, which grew 2% year over year to $47.9 billion. It has an extensive portfolio of 32 individual brands that generate at least $1 billion in annual sales.
Coca-Cola has demonstrated remarkable resiliency over several decades. The company has experienced only one year of decline in unit case volume over the last 50 years. That means there have been several economic recessions in which it still managed to sell more products to consumers.
There are risks, including shifting consumer preferences, but Coca-Cola has managed that well in recent years. It is still gaining market share in its category, and recent margin improvement signals strong pricing power.
If there's one consumer goods company that might pay you a growing income for the rest of your life, Coca-Cola is a good bet.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
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John Ballard 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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