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 (KO 0.28%), 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.
