Number of Coca-Cola shares needed for annual dividends of $10,000
In the world of investments, finding a reliable source of income can be a challenge. However, Coca-Cola (KO) might just be the answer for those seeking a steady stream of dividends.
With an annual dividend of $2.04 per share, Coca-Cola's dividend yield currently stands at around 2.93%, significantly higher than the 1.25% average yield of the S&P 500 index [1]. To generate $10,000 in yearly dividend income, an investor would need to own approximately 4,902 shares [3][5].
Coca-Cola's incredible profitability is a result of its strong brand and pricing power. The company sells 200 different varieties of beverages and has a presence in over 200 countries and territories [1][2]. This global reach and diverse product line contribute to its resilience in various economic conditions, as the small, recurring nature of Coca-Cola's beverage purchases provides a steady revenue stream.
Moreover, Coca-Cola's brand resonates strongly with consumers globally, providing it with proven pricing power. This strength supports the company's ability to maintain and potentially increase prices, contributing to its profitability.
Coca-Cola's durability and staying power as a business provide investors with peace of mind. The company has raised its dividend payout in February 2025, marking the 63rd consecutive year of a payout increase [1]. Analysts expect about 5% annual dividend growth through 2027, so fewer shares would be needed in the future to generate the same $10,000, assuming dividend increases [1].
In conclusion, Coca-Cola's dividend isn't expected to disappear due to its long-term success and profitability. For investors seeking a stable income stream, Coca-Cola stock could be a smart choice.
References:
- Coca-Cola's 2025 Dividend Outlook
- Coca-Cola's Global Presence
- Coca-Cola's Dividend Calculation
- Coca-Cola's Dividend Growth Expectations
- Coca-Cola's Dividend Requirements
Investing in Coca-Cola (KO) could help with personal-finance goals, as it offers a higher dividend yield than the S&P 500 average. To generate $10,000 in yearly dividend income, one needs to own approximately 4,902 shares of Coca-Cola. Furthermore, the company's ability to maintain and potentially increase prices, due to its strong brand and pricing power, supports its potential for continued dividend growth.
