Dividends4Life: Is The Coca-Cola Company (NYSE:KO) A Smart Pick For Income Investors?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Historically, The Coca-Cola Company (NYSE:KO) has been paying a dividend to shareholders. Today it yields 3.5%. Does Coca-Cola tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. KO has increased its DPS from $0.82 to $1.6 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes KO a true dividend rockstar. Relative to peers, Coca-Cola produces a yield of 3.5%, which is high for Beverage stocks but still below the market’s top dividend payers. I definitely rank Coca-Cola as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment.

Source: Simply Wall St.

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