Coca-Cola (NYSE: KO) is often considered one of the most reliable income stocks in the market — and for good reason. It has paid dividends for over 60 years and has never cut its dividend payment in that time.
How much would you need to invest for $1,000 in dividend income?
Of course, a company’s dividend yield fluctuates constantly as its share price moves higher or lower. But as of this writing, Coca-Cola has a share price of $69.56. With an annualized dividend of $1.94 per share, this gives Coca-Cola a dividend yield of about 2.8%.
To figure out how much you would need to invest to get $1,000 in dividend income, we can divide $1,000 by the dividend yield in decimal form (0.028). This shows that we would need to invest $35,714 in Coca-Cola stock to get $1,000 in annual dividend income.
Your income should grow over time
With a stock like Coca-Cola, it isn’t just about the current dividend income. Coca-Cola has not only been one of the most reliable dividend payers; it has been a reliable dividend grower as well.
In fact, Coca-Cola has paid dividends for 62 years and increased its dividend payment every year during that time. Its most recent increase was announced in February 2024 and represented a 5.4% raise for shareholders.
With this dividend streak, it would be extremely surprising if Coca-Cola did not continue to increase its dividend year after year for the foreseeable future. So, while an investment of about $35,700 would get you $1,000 in annual dividend income today, that income stream could be significantly higher five, 10, or 20 years from now.
Should you invest $1,000 in Coca-Cola right now?
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Matt Frankel 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.
Want $1,000 in Dividend Income? Here’s How Much You Have to Invest in Coca-Cola Stock was originally published by The Motley Fool
