Let's face it, folks, inflation is a silent killer. It's quietly chipping away at your savings, making your golden years feel more like tarnished brass. The stock market is on a roller coaster ride, and bond yields are barely beating inflation.
With this uncertainty, I know you're looking for dependable income opportunities. You want investments that can stand the test of time – safe havens that can weather any storm. That’s why Dividend Kings are back in focus these days.
You know these companies – “blue chip” giants that have been paying increasing dividends for at least 50 consecutive years. These are battle-tested businesses with a proven track record of delivering for shareholders, no matter what the economy throws their way.
This week, I'm going to show you one Dividend King that's handing investors a 7% yield and boasting a 62-year streak of dividend increases. This stalwart company offers income, value, and the security you need to face volatile times head-on.
Let's dive in:
Coca-Cola (KO): The Quintessential Dividend King
Coca-Cola (NYSE:KO) doesn't need an introduction. It's the iconic beverage giant that's been quenching thirsts for over a century. It's also a model for dividend consistency, rewarding shareholders with a growing stream of passive income year after year, decade after decade.
Sure, growth has slowed in recent years, but as 24/7 Wall St. points out, that’s likely due to the company’s already massive size:
“At some point, it becomes a law of large numbers game, and Coca-Cola is certainly feeling the effects of growing so large.”
But don't think for a second that Coke's lost its fizz. The company recently reported a 17% profit boost in the second quarter, exceeding revenue expectations. They're also crushing it on cash flow, racking up $3.3 billion in free cash flow during just the first six months of the year – more than enough to comfortably cover their dividends.
As it stands, KO stock offers a 2.7% yield, with a payout ratio of 75.5%, indicating the company’s commitment to rewarding shareholders. And I bet a sizable chunk of that extra cash flow is going right back into dividend increases and stock buybacks. Remember, KO is a Dividend King, not a Dividend Pauper, and their 62-year streak of dividend increases speaks volumes.
The best part? Even if inflation kicks up again, Coca-Cola isn’t fazed. Their products are staples for millions worldwide, giving them the pricing power to maintain profits – and those crucial dividend payments – no matter what the economy throws their way.
This is why Coca-Cola is the kind of stock you buy and hold forever. It’s the bedrock of a strong income portfolio, providing stability, growth, and the peace of mind you need to navigate a turbulent market.
Time To Act
If you’re looking to create a stable, lasting income stream capable of holding its own against inflation, consider adding Coca-Cola to your portfolio.
But this is just the tip of the iceberg! Stay tuned, because tomorrow I’m revealing 3 money market funds that are paying a whopping 6%… while your bank is giving you peanuts. It’s time to break free from the financial shackles they put on you!
