Here's How Many Shares of Coca-Cola You'd Need for $10,000 in Yearly Dividends
Written by Neil Patel for The Motley Fool -> Coca-Cola has increased its dividend payout in a jaw-dropping 63 straight years. This is a high-quality business, but its shares aren’t going to beat the market over the long term. Coca-Cola (NYSE: KO) is a household name, with stro
Coca-Cola has increased its dividend payout in a jaw-dropping 63 straight years.
This is a high-quality business, but its shares aren’t going to beat the market over the long term.
Coca-Cola (NYSE: KO) is a household name, with strong brand recognition that helps it remain relevant over time. The business has a presence all over the world, offers over 200 different drinks, and sees 2.2 billion servings of its products consumed every single day. This indicates tremendous market power.
The company's success has resulted in sizable profits that management prioritizes paying out to shareholders. Income investors might be wondering how many shares of Coca-Cola they'd need to earn $10,000 in yearly dividends .
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Coca-Cola's Board of Directors approved an increase to the dividend earlier this year in February, with the business now paying $0.51 per share each quarter. This makes 63 straight years that Coca-Cola has raised its payout, an unbelievable streak.
Investors who want to generate $10,000 in passive income from this beverage stock must own about 4,902 shares if Coca-Cola keeps its dividend at current levels. With a stock price of $70.50 (as of Dec. 12), this amounts to nearly $346,000 worth of shares.
Coca-Cola's powerful brand supports its wide economic moat. The company experiences stable demand regardless of economic conditions. And it's highly profitable, with a third-quarter operating margin of 32%.
