Identifying high-quality businesses that send investors cash every single quarter is a great way to allocate your capital.
Instead of always chasing the popular growth stocks, definitely an exciting game to play, perhaps it’s time to focus part of the portfolio on an income-generating strategy. Most investors are without a doubt familiar with one of the top companies that can satisfy this requirement.
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If you invest $10,000 in this blue chip dividend stock, you will be able to collect a passive income stream of $241 per year from the nearly 114 shares that you’d own. And that windfall is going to grow consistently in the future.
Rising payouts quench shareholders’ thirst for income
The business that can make you $241 with a $10,000 capital outlay is none other than Coca-Cola (NYSE: KO). The quarterly payout is $0.53. And it pays a dividend yield of 2.41%. That’s more than double the S&P 500 index.
The most impressive statistic is the company’s still active streak. Coca-Cola has now increased its dividend payout in a mind-boggling 64 straight years. This makes it a Dividend King, a list of businesses that have at least a 50-year streak going.
Berkshire Hathaway is the clearest example of what patience can result in over decades. The conglomerate, under the leadership of Warren Buffett, acquired its last share in the soft drinks business in 1994. The total cost basis was $1.3 billion.
Fast forward to 2026. That position is currently valued at $35 billion. But the best part is that the Coca-Cola holding brings in more than $840 million in annualized passive income for the Omaha-based firm.
Investors can bank on the beverage giant staying committed to raising the payout in the future. In the past decade, the quarterly dividend grew by 51%. Assuming the next 10 years bring a similar gain, investors will make $364 annually on that same $10,000 starting sum, translating to a hefty yield of 3.64% on the initial cost basis. This is what patience can get you.
This beverage stock’s durability is its best attribute
It’s no shock that in recent years, most of the market’s attention has gravitated to companies in the artificial intelligence (AI) industry, whether this includes well-funded start-ups or trillion-dollar behemoths. But I don’t think investors can confidently predict what these businesses will look like in five years. Most of these start-ups might not even exist a decade from now. That’s how rapidly things are changing. This constant shift introduces tremendous uncertainty.
