Coca-Cola: Great Income Stock or Dividend Trap?
Coca-Cola (NYSE: KO) is one of today's most enduring dividend stocks. With an iconic product, a decades-long streak of dividend increases, and a higher-than-average yield, it continues to attract interest as an income stock.
Nonetheless, stagnant free-cash-flow growth and the increasing cost of the payout should cause investors concern. Hence, the question is whether this payout remains worthwhile for new shareholders.
Whether one is a Coca-Cola bull or bear, few can question the endurance of its dividend. The company made its first payment in 1920, soon after the stock began trading. In 1963, it started a trend of increasing the payout annually.
Source Fool.com
