Coca-Cola shares have climbed 26% in 2026, putting the stock ahead of every "Magnificent Seven" member. The company just extended its dividend-hike streak to 64 straight years, and reaching $40,000 in annual dividend income now takes 18,868 shares.
Coca-Cola's rally outpaces the Magnificent Seven
Coca-Cola (NYSE: KO) shares have climbed 26% as of Sept. 3, a gain that puts the stock ahead of all the "Magnificent Seven" stocks this year. Yet the rally is not why the stock sits in so many portfolios. Instead, investors hold it for its passive income track record.
A 64-year streak of dividend hikes
In February, Coca-Cola's board raised the quarterly dividend 4% to $0.53, the 64th straight year the company has increased its payout. That track record makes Coca-Cola a Dividend King — a company that has raised its annual dividend for at least 50 consecutive years. Over the last decade, the quarterly dividend itself rose 51%.
What $40,000 in yearly dividends requires
Each share now pays $2.12 on an annualized basis. As a result, an investor would need to own 18,868 shares to generate $40,000 in annual dividends. Based on Coca-Cola's stock price of $88.24, that stake would require an initial investment of nearly $1.7 million.
Source: The Motley Fool
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