3 Dividend Stocks That Pay You Better Than Coca-Cola Does
The strength of its dividend is just one of the reasons why investors, including Mr. Warren Buffett, choose to hold Coca-Cola (NYSE: KO) stock. The blue chip's annual payout, now at $1.64 per share, yields investors about 3.4%. Moreover, Coca-Cola has increased its dividend for 57 years straight. We can easily call the company a dividend aristocrat -- a term used to describe a company that increase its dividend payouts for at least 25 years.
Buffett has benefited handsomely from this enviable dividend history. Berkshire Hathaway began purchasing Coca-Cola in 1988, and through subsequent purchases and four two-for-one stock splits, Buffet has built a collection that now totals 400 million shares. Consequently, the $1.3 billion investment yields $656 million annually in dividend income. These payments may be reason enough for Buffett to hold onto the stock.
The average investor cannot expect to earn millions in dividend income right off the bat. Moreover, new investors looking to mimic Buffett's success may want to avoid Coca-Cola altogether. Analysts expect the company's 2021 profits to ring in below its 2019 levels. Besides, there are many other dividend stocks that yield more than 3.4%. Names such as Cardinal Health (NYSE: CAH), Innovative Industrial Properties (NYSE: IIPR), and NetApp (NASDAQ: NTAP) come to mind as a few that could offer sizable returns to investors over time.
Source Fool.com
