Coca-Cola (KO 0.55%) is a business that needs no introduction. The king of soft drinks sells 200 different varieties of beverages and has a presence in over 200 countries and territories. Even more impressive is the fact that 2.2 billion servings of its drinks are consumed each and every day. Coca-Cola clearly has tremendous reach.
The beverage stock has rewarded investors with consistent profitability, leading to ongoing dividends. But here's how many shares of Coca-Cola investors need to own if they want to generate $10,000 in annual dividends.
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Serving up dividends
Coca-Cola currently pays a quarterly dividend of $0.51 per share, which translates to $2.04 per share annually. This means that investors must own 4,902 shares to produce $10,000 in yearly dividend income.
One thing that stands out is the company's dividend yield of 2.93% (as of Aug. 15). This is significantly higher than the 1.25% average yield of the S&P 500 index.
Another impressive feat is that Coca-Cola raised its dividend payout earlier in February 2025. That bump marked the 63rd straight year a payout increase was approved. The management team is clearly focused on rewarding shareholders.
Coca-Cola's staying power
Investors can have peace of mind knowing that Coca-Cola's dividend isn't going anywhere. The business has been around for a very long time, showcasing its durability and staying power. And given the small, recurring nature of buying a Coca-Cola beverage, the company should continue to perform reasonably well in adverse economic scenarios.
Coca-Cola's brand also resonates strongly with consumers across the globe, helping support proven pricing power. This explains the company's incredible profitability. In the past decade, Coca-Cola's operating margin has averaged a stellar 26.2%.
For those looking to have a steady income stream from their investments, Coca-Cola stock is a smart choice.
