Own This Many Shares of Coca-Cola, and the Dividends Could Cover Your Phone Bill
Coca-Cola's dividend is as dependable as they come and may be able to pay some bills for investors.
The average monthly cellphone bill in the United States is around $141, or $1,700 annually, according to T-Mobile, a leading mobile phone carrier. Despite this seemingly high cost, investors can potentially offset a portion of their phone expenses by investing in dividend stocks, particularly Coca-Cola (KO), which has shown consistent growth in its dividend payouts over the years.
To break even on the cost of a phone bill using Coca-Cola's dividend, an investor would need to own 67 shares of the company. At the current stock price of approximately $96, this would require an investment of about $6,432 to generate enough income from Coca-Cola to cover one month of phone service.
If we consider the entire year, an investor would need nearly 802 shares of Coca-Cola to generate enough income to essentially cover the annual cost of a phone bill, which is estimated at $1,700. At the current stock price, this would amount to nearly $77,000 in investment.
However, it is essential to note that this investment does not guarantee a break-even point, as the dividend growth rate of Coca-Cola is currently around 4% annually, which is slightly below the inflation rate of phone bills, estimated to increase by 3.8% per year. Despite this, Coca-Cola remains an attractive option for investors looking to generate a steady income stream, as it is considered one of the "Dividend Kings," with at least 50 consecutive years of increasing dividend payouts.
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