Coca-Cola's Dividend Growth Makes it a Passive Income Investor's Dream

Coca-Cola is a dividend investor's dream, thanks to its strong brand, durable demand, and huge profits. The company has raised its quarterly dividend payout for 64 straight years, making it a Dividend King. Coca-Cola pays an annualized dividend of $2.12 per share, which means investors need to own at least 4,717 shares to generate $10,000 in yearly passive income.

The current stock price would require more than $414,000 to buy that many shares. However, Coca-Cola's ability to fund its dividends with tremendous profits makes it an attractive option for those seeking long-term income. The company's free cash flow is expected to be $12.4 billion in 2026.

The Motley Fool Stock Advisor analyst team has identified the top 10 stocks for investors to buy now, and Coca-Cola wasn't one of them. However, its track record of dividend growth and strong brand make it a compelling addition to any portfolio.