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.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Based on Coca-Cola's (NYSE: KO) 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. 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. Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn't one of them.
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