Key Points
Coca-Cola has raised its dividend for the past 64 years.
Since the stock is soaring this year, the yield is down.
Coca-Cola (NYSE: KO) has one of the most iconic dividends on the market. The beverage giant has raised its dividend payout for 64 consecutive years, through hyperinflation, recessions, market crashes, and more, and it's one of the most reliable dividends you can find.
The company is a Dividend King, or a company that has raised its dividend payout for 50 years or more. It usually has a high yield of around 3%, but because the stock price is up 37% this year, trouncing the performance of the S&P 500 (SNPINDEX: ^GSPC), the dividend yields 2.2%.
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However, getting paid $1,000 monthly from Coca-Cola stock might require a larger investment than you think.
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The importance of saving for retirement
Coca-Cola pays $2.12 in annual dividends per share this year. The dividend is raised annually in the first quarter and paid quarterly, not monthly. But if you'd want $12,000 annually for $1,000 in monthly income, you'd need to own 5,661 shares. At today's price, to buy those shares, you'd need to spend $532,528.
That's a lot of money to spend on one stock, and $1,000 monthly won't be enough for most people to retire.
To create a portfolio you can retire on, you'd want to save more than that, and you'd also want to distribute your funds among a varied group of reliable stocks that you can count on to cut you a monthly or quarterly check.
Coca-Cola is a fantastic option for the group, as demonstrated by its outperformance this year, and you can rely on it to keep raising its dividend and create shareholder value.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.