Coca-Cola: October's Best Dividend Stock.

  Coca-Cola: October's Best Dividend Stock.   There is still a great option for investors looking for a reliable, above-average income. Sometimes it can get stuck in an economic environment marred by strangely low general interest rates. This may cause investors to look for ways to diversify to get a good return on their investment capital. One of these options is stocks that pay dividends. But in volatile market conditions, this is not easy either. Here right now a closer look at the stock to choose from:

Coca-Cola: Dividend yield: 3,1%

The brand is known to be perhaps as well known as any other company in the world. So much so that Coca-Cola KO (NYSE) $52,47 -0,49 (-%0,93)  has been on the market since 1886 and its products have been woven into the fabric of the culture. The stock has not only paid a reliable quarterly dividend for many years, but has continued to increase its annual payouts every year since 1962. This is the good side of consumers choosing products that they can buy again and again without hesitation. In fact, sales have plummeted at the company's top line, even causing potential buyers to pause since 2013. However, this narrowing top row (not without avoiding sugary sodas) is largely by design.

Coca-Cola: October's Best Dividend Stock.

Today, the company has decided to quit the bottling business, aiming to focus more on the licensing and franchising business. It has even spent the last few years selling its bottling operations to third-party bottlers who pay the beverage giant royalties for the right to use the brand name. This arrangement meant lower sales but also an indication that brand licensing is a (much) higher margin business. This business approach proved that Coca-Cola would make more profit than before. After all, that's what investors ultimately want to see.  

Source: The Motley Fool

 

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