Top Dividend Stock #10: Coca-Cola (KO)
Dividend Yield: 3.17%
YTD Performance: -6.95%
52-Week Return: -4%
Making our list of dependable dividend stocks for the first time in several months is Coca-Cola (KO). The company owns and markets more than 500 nonalcoholic beverage brands in 200 countries, including four of the top brands in the world: Coke, Diet Coke, Fanta and Sprite.
The largest and most recognizable beverage company on the planet upped its quarterly distribution by 9% to 30.5 cents back in February — its 52nd consecutive annual increase — and the current 3.17% yield is just high enough to beat out Procter & Gamble (PG) for the last spot on our list.
The stock is down almost 7% year-to-date, which has also affected its yield, but capital appreciation is not the draw of KO stock. The stock has been climbing slowly but surely over the last several years and has rewarded patient investors who have held this blue chip for its steady payouts.
However, Coca-Cola will have an opportunity to reverse its recent slide as the global economic recovery continues. Strengthening emerging markets will increase the number of consumers from which KO can generate revenue, and that should ultimately boost free cash flow and further distributions.