Determining the Number of Coca-Cola Shares Needed for $4,000 Annual Dividends
Wanting a steady source of dividend income? Look no further than The Coca-Cola Company (KO), offering a 2.8% forward-looking yield. With an impressive 63 consecutive years of annual payout growth, this beverage titan's dividend reputation is unmatched. Many investors leverage its dependably climbing dividend to cover their upwardly-mobile recurring expenses.
So, to provide approximately $4,000 worth of yearly dividends, roughly equivalent to an average household's annual spending on utilities, gas, water, phone, and cable TV (as reported by the Bureau of Labor Statistics), how many Coca-Cola shares would be required?
The Coca-Cola Company: An Overview
This well-known entity hardly requires an introduction. The company is famous for its eponymous cola and also houses other popular beverage brands, such as Minute Maid juices, Powerade sports drinks, Gold Peak tea, and Dasani water. With such a diverse portfolio, it can cater to nearly every consumer's changing preferences, a factor contributing to its remarkable six-decade streak of reliable yearly dividend growth.
Recently, Coca-Cola boosted its dividend to $0.51 per share. To acquire $1,000 in quarterly dividend income from this consumer goods powerhouse, or $4,000 annually, you would need 1,961 shares of Coca-Cola. This translates to a significant investment value of approximately $140,000 at current market prices.
Start Small and Let Dividend Reinvestment Work Its Magic
That might seem like a substantial sum for many investors. However, it's less daunting than it appears. With the power of dividend reinvestment, smaller investments can lead to substantial returns over time. For instance, a $12,500 investment in Coca-Cola 30 years ago would be worth more than $141,000 today, had the dividends been continuously reinvested.
Although past performance can't guarantee future results, it does provide a glimpse into what's possible.
[1]: "Coca-Cola Dividend History: Rising for 54 Straight Years," Dividend.com. [Online]. Available: https://www.dividend.com/stocks/ko-dividend-history/. [Accessed: 18-Dec-2022].[3]: "Coca-Cola Stock Dividend Information," NASDAQ. [Online]. Available: https://www.nasdaq.com/symbol/ko/dividends. [Accessed: 18-Dec-2022].
- If you want to earn around $4,000 annually in dividends, similar to an average household's utility expenses, you would need to invest in approximately 1,961 shares of The Coca-Cola Company (KO).
- Beyond its flagship Coca-Cola brand, The Coca-Cola Company also offers a variety of beverages such as Minute Maid juices, Powerade sports drinks, Gold Peak tea, and Dasani water, catering to diverse consumer preferences.
- By reliably increasing its dividends for 63 consecutive years, The Coca-Cola Company has established a reputation as a dependable source of dividend income for investors.
- Investors often use The Coca-Cola Company's steadily climbing dividend to cover their escalating recurring expenses, leveraging its power to provide a stable financial base.
