Why Do Baby Boomers Love Coca-Cola Stock?

Some baby boomers are enjoying retirement, while others have a few years of work ahead of them. Both groups have something in common when it comes to investing: a love for dividend-paying stocks. And that's one of the reasons baby boomers like shares of beverage giant Coca-Cola (NYSE: KO).

Image source: Getty Images.

Coca-Cola is a dividend aristocrat, meaning it's an S&P 500 company that has lifted its dividend for at least 25 straight years. The company earlier this year announced its 58th consecutive annual increase. Coca-Cola boosted the quarterly dividend by 2.5% to 41 cents a share. That equals an annual dividend of $1.64 a share. The dividend payout ratio shows Coca-Cola paid out about 81% of its free cash flow in the form of dividends over the past year.

Source Fool.com