When it comes to investing in the stock market, it’s not always about trying to achieve the highest levels of capital growth in your portfolio. Some people have the simple objective of owning companies that provide them with a nice income stream.
Along those lines, here’s one of the best dividend stocks to buy with $5,000 right now.
Image source: Getty Images.
Based on Coca-Cola‘s (KO 0.91%) recent stock price of $75.91, $5,000 would buy investors 66 shares in the soft drinks giant. This would generate about $140 in annualized passive income.
Coca-Cola, easily one of the top dividend stocks out there, increased its quarterly payout to $0.53 in February. This was the 64th straight year that a dividend hike was approved by the board of directors. That sort of track record indicates a real commitment to shareholders.
Today’s Change
(-0.91%) $-0.71
Current Price
$77.47
Key Data Points
Market Cap
$333B
Day’s Range
$77.31 – $78.17
52wk Range
$65.35 – $82.00
Volume
11M
Avg Vol
18M
Gross Margin
61.75%
Dividend Yield
2.66%
Investors shouldn’t worry about the sustainability of the dividend. Coca-Cola is a business that has staying power, as evidenced by its long operational history. This means that it isn’t prone to disruption by technological forces impacting other companies. Plus, it possesses a strong brand that supports ongoing pricing power and robust profitability.
It’s important to set the right expectations. The beverage stock isn’t going to beat the market. Its trailing-10-year total return comes up well short of the S&P 500 index.
Neil Patel 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.
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