Coca-Cola Edges Out Altria Group as Dividend King

Altria Group's (NYSE: MO) stock boasts a high yield of 6.5%, but some investors might find Coca-Cola (NYSE: KO) shares more appealing due to their stronger business prospects and dividend consistency.

Coca-Cola has a 2.4% dividend yield, which is below Altria Group's but still above the S&P 500's 1%. The beverage company has a long history of raising its dividends annually, making it a Dividend King along with Altria Group.

However, Coca-Cola's sales volume has shown improvement in recent quarters. In the second quarter, revenue grew 5% year-over-year, with volumes increasing and price/mix contributing to the growth. The company also generated $6.9 billion in free cash flow for the first half of the year, which will easily cover its dividend payments.

While Coca-Cola's fast-growing days may be behind it, investors seeking consistent dividends from a steady business might find the beverage company more attractive than Altria Group.