Is Coca-Cola Still the Ultimate Dividend Stock to Buy Now and Hold Forever?

The Motley Fool

by newsfeedback@fool.com (Neil Patel)

February 20, 2026

AI-Generated Deep Dive Summary

Coca-Cola (NYSE: KO) remains a titan in the beverage industry, with an unparalleled global presence that spans 200 countries and sees its products consumed over 2.2 billion times daily. While its stock has appreciated by just 82% over the past decade, this modest growth doesn’t overshadow its reputation as a steadfast dividend payer. The company consistently returns cash to shareholders through regular dividend increases and strong free cash flow generation. With a long history of reliable payouts and a track record of adapting to market changes, Coca-Cola offers stability and passive income for investors willing to hold for the long term. The beverage giant’s enduring success lies in its ability to maintain a commanding presence across diverse markets. Its vast distribution network and iconic brand names like Coke, Sprite, and Fanta ensure steady demand, even during economic downturns. This resilience has made Coca-Cola a favorite among dividend-focused investors seeking reliable income streams without the volatility often associated with high-growth stocks. While Coca-Cola may not offer explosive capital appreciation, its consistent dividend history makes it an attractive option for those prioritizing passive income over short-term gains. The company’s ability to generate substantial free cash flow has allowed it to increase dividends annually since 1989, a streak that underscores its commitment to shareholder returns. This predictability and stability are key reasons why Coca-Cola continues to be viewed as a “buy-and-hold” staple for many investors. For finance enthusiasts, Coca-Cola’s story highlights the importance of balancing growth with dividend yield. While tech startups or high-growth companies may promise higher returns, Coca-Cola offers a proven model of sustainability and reliability. Its ability to adapt to changing consumer preferences while maintaining profitability makes it a standout choice for long-term investing strategies. For those looking to build wealth through consistent income streams, Coca-Cola’s legacy as a dividend giant remains hard to overlook.

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Originally published on The Motley Fool on 2/20/2026