$10K Invested in Coca-Cola in 1988 Would Be Worth Over $336K Today

Coca-Cola is one of the finest examples of dividend growth stocks, according to The Motley Fool. With 64 consecutive years of raising annual dividends, the company has attracted investors like Warren Buffett, who first added the stock to Berkshire Hathaway's portfolio in 1988.

Buffett was drawn to Coca-Cola's strong free cash flow and capital returns program. Anyone who invested at the same time as him and held on would have been repaid for their purchase multiple times over through dividends alone.

A $10,000 investment made in Coca-Cola before its first dividend distribution of 1988 has paid out a substantial sum: $123,266.64 in total dividends over almost 39 years. The shares are also worth about $336,000 as of this writing and will pay out another $2,026.72 on Oct. 1.

The company's stable free cash flow and generous capital return program have made it a reliable payer of high yields, including the 65.3% yield on Buffett's original $1.3 billion investment over more than 30 years.