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What Makes Coca-Cola a Top Dow Dividend Stock?

By Anders Bylund – Jan 23, 2014 at 2:00PM

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Coca-Cola's dividend yield is respectable but not terribly impressive. So why is Coke still one of the best dividend stocks on the Dow?

Dividends can make you rich, and Coca-Cola (KO 0.43%) is one of the healthiest dividend payers on the Dow Jones Industrial Average (^DJI).

But Coke's 2.9% yield is not dramatically stronger than the 2.6% Dow average or the 2.8% you'll find at archrival PepsiCo (PEP 0.88%). So what sets Coca-Cola's dividend apart from Pepsi or from other Dow stocks? In the video below, Fool analyst Anders Bylund explains why Coca-Cola's dividend ranks among the best of the best.

Fool contributor Anders Bylund owns shares of Google. The Motley Fool recommends Apple, Coca-Cola, Google, and PepsiCo. The Motley Fool owns shares of Apple, Coca-Cola, Google, and PepsiCo.

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.

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$33,597.92 (%)
Coca-Cola Stock Quote
$63.81 (0.43%) $0.27
PepsiCo Stock Quote
$183.78 (0.88%) $1.60

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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