Coca-Cola Is One of the Top Dividend Stocks Investors Can Buy in September

Key Points

• Coca-Cola's average dividend yield over the past decade has been around 3%.

• The iconic beverage maker has increased its dividend for 63 consecutive years.

• 10 stocks we like better than Coca-Cola ›

Dividends are a good way to make money in the stock market without having to rely on stock price growth. However, not all dividend stocks are created equal. Some stocks' dividends are unsustainable due to poor business performance, while others have stood the test of time as reliable sources of income.

If you're looking for a dividend stock that falls into the latter category, look no further than beverage giant Coca-Cola (NYSE: KO). It's one of the top dividend stocks you can buy in September (or any time, really) because of its yield and stability.

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Image source: Getty Images.

At the time of this writing, Coca-Cola's dividend yield is just under 3%, which is right in line with its average over the past decade. Although a dividend yield that's more than double the S&P 500 index's is good for investors, it's Coca-Cola's dividend increase streak that adds the icing on the cake.

Coca-Cola has increased its annual dividend for 63 consecutive years, making it a Dividend King (the name given to companies with at least 50 years of consecutive increases). The payout from its dividend has doubled in the past 13 years, which is impressive for a company with a streak as long as Coca-Cola's.

KO Dividend data by YCharts

When you invest in Coca-Cola, you know you're investing in one of the world's most successful and sustainable businesses. It has a stronghold on the global non-alcoholic beverage market, and there are no signs of this ending anytime soon. The company has consistently shown its willingness to adjust its portfolio to meet changing consumer preferences.

That's a recipe for sustained success and why investors should expect the dividend increases to continue as long as they hold the stock.

Should you invest $1,000 in Coca-Cola right now?

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Stefon Walters has positions in Coca-Cola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.