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Coca-Cola’s Dividend Rises Again: Is it a No-Brainer Buy for Long-Term Investors?

The Coca-Cola Company (NYSE:KO), a stalwart in the beverage industry, continues to demonstrate its strength as a premier dividend stock, making it an attractive option for income-focused investors. With its recent announcement of a 62nd consecutive annual dividend increase, Coca-Cola not only showcases its financial resilience but also its commitment to returning value to shareholders.

Last week, Coca-Cola's Board of Directors approved a 5.4% increase in its quarterly dividend, raising it from 46 cents to 48.5 cents per common share. This adjustment translates to an annual dividend of $1.94 per share, up from $1.84 in 2023. With the new dividend payment, the stock is yielding around 3.3%. To earn $1,000 in annual dividends at that rate, you would need to invest more than $30,000.

And given the stock’s consistent dividend growth, it’s likely that income will rise even higher in the years ahead. The company says that since 2010, it has paid its shareholders $84.7 billion in dividends.

The company's financial health, as revealed in its latest earnings report, further bolsters the case for Coca-Cola as a top dividend stock. In 2023, the company’s net revenue grew by 6% to $45.8 billion, with organic revenues also up by 12%.

With an outlook for organic revenue growth of 6% to 7% in 2024 and a commitment to continuous dividend increases, Coca-Cola presents a compelling proposition for dividend investors. The company looks to be in solid shape, making it a no-brainer buy if you’re risk averse and looking for a stock to hold for the long haul. Over the past decade, the stock has generated returns totaling 52%. And when you include the dividend, then those returns more than double to 110%.