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

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.

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John Maxfield

John is The Motley Fool's senior banking specialist. If you're interested in banking and/or finance, you should follow him on Twitter.

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Related Tickers

9/1/2015 10:01 AM
KO $38.80 Down -0.52 -1.32%
Coca-Cola CAPS Rating: ****