Here's How Many Shares of Coca-Cola You Should Own to Get $5,000 in Yearly Dividends

Source The Motley Fool

Coca-Cola (NYSE: KO) has a long history. It began in the 1890s and continues to focus on beverages.

Part of the company's history includes raising dividends. It's done that for 63 straight years, an impressive feat that makes the company a Dividend King. This group of companies has increased payouts annually for at least 50 straight years.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Can Coca-Cola sustain its dividend payments? After checking the financials to make that determination, how many shares do you need to own to receive $5,000 in yearly payouts?

Someone picking out a can of soda at the store.

Image source: Getty Images.

Dividend sustainability

A couple of months ago, the Coca-Cola board of directors raised the quarterly dividend by over 5% to $0.51 a share. A dividend increase of that magnitude often signals the board's confidence about the company's prospects.

It's important to look deeper to determine if the company can afford the payout. Its 79% payout ratio indicates it can, since that compares dividends to earnings.

We can figure out the number of shares you'll need to own if you're targeting $5,000 in payments.

Basic calculations

The $0.51 per-share quarterly dividend translates into $2.04 a year. Dividing $5,000 by $2.04 equals about 2,451 shares. With a share price of $73 as of April 17, you'd need to invest nearly $179,000.

Of course, this assumes that the board of directors keeps dividends constant. Should the company continue raising them, you'd receive more than $5,000 per year with a $179,000 investment.

Based on its new quarterly dividend rate, Coca-Cola stock has a 2.8% dividend yield. That's double the S&P 500 index's yield.

Given the company's willingness and ability to pay dividends, its history of increases, and relatively high yield, investors seeking dividends should strongly consider a position in Coca-Cola stock.

Should you invest $1,000 in Coca-Cola right now?

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.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $622,041!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Lawrence Rothman, CFA 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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
USD/CHF remains depressed below 0.8000 amid a moderate market optimism The US Dollar is unable to put any significant distance from last week’s long-term low at  0.7960 area, as the pair remained capped below 0.8000 on Monday
Author  FXStreet
10 hours ago
The US Dollar is unable to put any significant distance from last week’s long-term low at  0.7960 area, as the pair remained capped below 0.8000 on Monday
placeholder
OPEC+ Announces Further Production Increase, Crude Oil Prices Likely to DropWTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
Author  Insights
10 hours ago
WTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
placeholder
Gold Price Forecast: XAU/USD failure to breach $3,300 brings $3,250 back into focusGold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week.
Author  FXStreet
11 hours ago
Gold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week.
placeholder
US Dollar Index (DXY) remains depressed below 97.00 on trade talks, US debt woesThe US Dollar has bounced up from three-year lows on Monday, but remains depressed below the 97.00 level.
Author  FXStreet
11 hours ago
The US Dollar has bounced up from three-year lows on Monday, but remains depressed below the 97.00 level.
placeholder
UK-US trade agreement is now in forceUK car export tariffs to the US cut from 27.5% to 10%, saving manufacturers hundreds of millions annually.
Author  Cryptopolitan
11 hours ago
UK car export tariffs to the US cut from 27.5% to 10%, saving manufacturers hundreds of millions annually.
goTop
quote