Dividend Growth Trumps High-Growth Stocks

Dividend investors often focus on companies that have track records of consistent dividend increases. One such group is known as Dividend Kings, which consists of companies that have raised their payouts for at least 50 consecutive years. Coca-Cola and Lowe's are two well-known examples of this group.

Procter & Gamble has also paid a dividend in 136 straight years, with the most recent increase occurring in April, marking its 70th straight year of a hike. Its quarterly dividend payout is currently 3%, making it one of the highest among these companies.

Berkshire Hathaway's stake in Coca-Cola generates significant passive income for the conglomerate. With an initial capital outlay of $1.3 billion, the company now receives over half that amount annually through Coca-Cola's dividend payments.