The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

There's something satisfying about getting paid to own a piece of a business. You buy shares, the company sends you money every so often, usually once per quarter, and you don't have to lift a finger.

Coca-Cola (NYSE: KO) has been doing exactly that for its shareholders since before your grandparents were born. The beverage giant has paid dividends for over a century and raised them for 62 consecutive years, making it a Dividend King (a title reserved for companies with at least 50 consecutive years of annual dividend increases).

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

So how many Coke shares would you actually need in order to collect $1,000 a year in dividends?

Let's do some napkin math. Coca-Cola pays $0.53 per share, per quarter. That's $2.12 per share annually. The stock trades at roughly $80 per share today, June 17. That works out to an annual dividend yield of 2.65%.

So you're looking for total dividend payouts of at least $1,000 a year. That would take roughly 472 shares, currently worth $37,760 on the open market.

These figures assume Coca-Cola's dividend levels will stay unchanged for years to come. But I already mentioned that the company insists on boosting the payouts every year. The income stream has grown at an average annual rate of 4.2% over the last decade, adding up to a 51.5% increase in yearly dividend checks. The company has every incentive to keep this trend going, so your $1,000 payout in 2026 should rise to approximately $1,217 in five years. That's without buying another share.

Coca-Cola isn't just a familiar logo; it's a cash machine. The company posted $13.1 billion in net income on $47.9 billion in revenue last year. That's a 27% net margin, meaning Coke keeps more than a quarter of every dollar it brings in. The balance sheet shows $9.8 billion in working capital and manageable debt levels.

Coke's secret is an asset-light business model. Coca-Cola makes the concentrate and manages the brand. A global network of bottling partners handles the heavy lifting of manufacturing and distribution. Less factory equipment means less capital tied up, which frees up more cash for dividend growth.

KO Total Return Level data by YCharts

Unlike bonds or savings accounts, dividend stocks keep you invested in the market. Coca-Cola shares have returned 76% over the past 10 years, on top of the dividend income.

Let's say you bought 100 Coke shares a decade ago, an investment of around $4,500. That investment would be worth $8,029 today, plus the dividends. If you reinvested the payouts in more Coke shares through a dividend reinvestment program (DRIP), you'd have a total value of $11,020 and about 138 shares in your portfolio.

Again, you need about 472 Coke shares to fuel $1,000 of annual dividends at today's rates, but the math gets easier over time. This figure is just a starting point for reliable wealth-building.

Before you buy stock in Coca-Cola, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,305!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,293,148!*

That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.

See the 10 stocks »

*Stock Advisor returns as of June 19, 2026.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Here's How Many Shares of Coca-Cola You'd Need to Buy for $1,000 in Yearly Dividends was originally published by The Motley Fool