Any time you can make money from a stock without relying on its stock price appreciating, it's a good thing. That's why dividend stocks can be a valuable piece of virtually anyone's portfolio. They reward investors for simply holding on to them.
However, not all dividend stocks are alike. Some companies' dividends are at risk of being cut or eliminated because of poor business and financial performance. If you're looking for the smartest dividend stock to buy right now, it'd be one where you don't have to second-guess the stability of its dividend. That's the case with Coca-Cola (KO +2.46%).
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Coca-Cola is a Dividend King, having increased its annual dividend for at least 50 consecutive years (it's currently at 63 years). That's a title that only a small number of companies hold, and one that shows Coca-Cola's longevity, consistency, and shareholder-friendly nature.
When you invest in Coca-Cola, you know you're investing in one of the world's most thorough businesses. It has a stronghold on the non-alcoholic beverage market, and its products sell regardless of economic conditions. This has been a recipe for its sustained success, and there are no signs of this changing for the foreseeable future.
NYSE: KO
Key Data Points
Coca-Cola's average dividend yield over the past five years has been around 3%. If that average were to continue, a $1,000 investment would pay out $30 annually. That's not yacht-shopping money, but it can pay off over time as it adds to the natural compound effect of investing. Coca-Cola is a stock you don't have to lose sleep over.
