Coca-Cola (NYSE: KO) stock is a great example of a classic Dividend King. It has raised its dividend for 61 years, and the dividend usually yields around 3%, or close to double the average S 500 yield. The juicy payout, growth, and reliability help it stand out in a sea of stocks.

But you'd have to go back many years -- more than 30 -- to the last time this Buffett favorite was a market-beating stock, dividends included. Is it still a worthwhile investment? Or can you make your money work harder for you elsewhere?

First, let's define what it means to be underperforming the market. To be clear, Coca-Cola stock has been a net gainer over many years, and investors have not lost money investing in Coca-Cola stock unless they quickly bought and sold at the wrong time. Coca-Cola stock is down 5% this year, but it's up 27% over the past three years and 56% over the past 10 years. That's still a gain, but it's well below what you would have gotten if you'd invested in the market. Even when you add in Coca-Cola's esteemed dividend, you'd have gotten much more money investing in the S 500.

Continue reading

Source Fool.com