Here's Exactly How Much $10,000 Invested in Coca-Cola Has Paid Out in Dividends Since 1988
Reliable annual dividend hikes can compound more rapidly than you might expect.
Overview
Dividend growth stocks have the potential to turn relatively modest investments into meaningful sources of annual income for patient investors, given time. Coca-Cola (NYSE: KO) is one of the finest examples. The company has raised its annual dividend payouts for 64 consecutive years.
The company's stable free cash flow and generous capital return program are among the many factors that have attracted investors, including Warren Buffett, to the stock. The Oracle of Omaha began buying Coca-Cola stock for Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) portfolio in 1988. Over the next few years, he spent a total of $1.3 billion on his company's stake in the business, and he hasn't touched it since. The position has distributed a growing payout to Berkshire every year, and this year alone, it's on track to return $848 million to Berkshire.
Details
Even if you started with a much more modest investment in 1988, you'd have received quite a substantial sum from Coca-Cola over the years. Here's exactly how much $10,000 invested in Coca-Cola in 1988 would have paid out in dividends over the many years since.
Source
Originally published at www.fool.com.