Early Retirement Portfolio: 10 Stocks to Live Off Dividends

7. The Coca-Cola Company (NYSE:KO)

Dividend Yield as of January 6: 3.17%

An American multinational beverage company, The Coca-Cola Company (NYSE:KO) ranks seventh on our list of the best dividend stocks for an early retirement portfolio. As a global entity, the company faces challenges across various regions rather than being confined to a single area. Despite this, it has consistently navigated regional events without missing a year of dividend increases, thereby enhancing shareholder value. This demonstrates remarkable resilience and dedication. In addition to its reputation for delivering a reliable product, the company has developed exceptional marketing strategies that ensure its brand remains prominent and at the forefront of consumers’ minds.

In the third quarter of 2024, The Coca-Cola Company (NYSE:KO) posted nearly $12 billion in revenue, exceeding analysts’ projections by $290 million. The company demonstrated strong cash flow, with $2.9 billion in operating cash flow and $1.6 billion in free cash flow. In addition, Coca-Cola achieved a notable adjusted operating margin of 30.7%, underscoring its solid profitability.

This consistent performance has resulted in significant long-term gains for shareholders, with The Coca-Cola Company (NYSE:KO) increasing its dividend for an impressive 62 consecutive years. Such an exceptional record of rewarding investors is uncommon among companies. Currently, the company pays a quarterly dividend of $0.485 per share for a dividend yield of 3.17%, as of January 6.

Warren Buffett’s Berkshire Hathaway was the largest stakeholder of The Coca-Cola Company (NYSE:KO) at the end of Q3 2024 with 400 million shares. Overall, 69 hedge funds held investments in the company in Q3, worth nearly $35 billion in total.