Why Dividend Investors Can't Get Enough of The Coca-Cola Company

Here are three reasons The Coca-Cola Company is a great dividend stock.

Jun 21, 2014 at 8:18AM


There are few things as satisfying as a high-yielding dividend stock. Though one thing that comes close is an ice-cold soda. 

Fortunately, when it comes to Coca-Cola (NYSE:KO), income-seeking investors can have both. As Motley Fool contributor John Maxfield discusses in the video below, there are at least three reasons that the nearly 130-year-old company's stock fits the bill.

In the first case, its payout ratio is a generous yet still reasonable 61%. This is important because it leaves room for both organic share price appreciation and future dividend growth. Second, Coca-Cola's price-to-earnings ratio is 21.84, or roughly in line with the broader market, suggesting that it's neither wildly under- or overpriced. And third, at 3%, the soda company's stock yields far more than the S&P 500, which comes in at 1.93%.

Want to learn more? Check out the following video, in which John delves deeper into the reasons that dividend investors love Coca-Cola.

The world's smartest investors are buying these hot dividend stocks today
Are you looking for a simple list of stocks that the world's smartest dividend investors are buying right now? If so, our top analysts have put together a free report you need to see, revealing the absolute best high-yielding stocks in the market today. To see which stocks made the list, click here now to instantly access this invaluable free report.

John Maxfield has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola. The Motley Fool has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers