Want Income for Life? Coca-Cola Has Raised Its Dividend for 64 Straight Years and Yields 2.4%. Here's Whether It Belongs in Your Portfolio.

Coca-Cola (NYSE: KO) has raised its dividend for 64 consecutive years and yields about 2.4% at a share price near $90. I think it belongs in most income portfolios, though not for the reason most people assume.

In February, Coca-Cola raised its quarterly payout from $0.51 per share to $0.53, bringing the annual dividend to $2.12 per share from $2.04. That was a 3.9% increase and the 64th straight year of growth, a streak that has survived recessions, inflation spikes, and repeated shifts in what people drink. This streak puts Coca-Cola on the elite list of Dividend Kings, companies that have grown their dividends for at least 50 consecutive years.

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Here is the honest part: A 2.4% yield doesn't sound like income for life. Five-year average dividend growth runs near 4.5%, and the payout ratio sits at 63.7%. The dividend alone will not drive strong near-term returns. What makes the case is what sits behind the payment.

The business is growing faster than the dividend

Second-quarter net revenue rose 7% to $13.38 billion. Comparable earnings per share (EPS) grew 11% to $0.97 against a $0.93 estimate, and reported EPS jumped 16% to $1.03. Global unit case volume increased 5%, with every single reporting segment posting volume growth.

The company is placing fewer and larger bets rather than chasing every trend. Coca-Cola Zero Sugar has become the growth engine, with global unit case volumes up 14%. Fairlife is the protein platform, and Topo Chico anchors premium hydration.

Fairlife matters the most to me. It gives Coca-Cola real exposure to protein and functional nutrition, categories that benefit from fitness culture and the adoption of weight-loss medications. Protein intake is gaining popularity in mainstream health conversations. But capacity has been the constraint. The New York facility began construction at the start of 2026 and is ramping up throughout the year, de-bottlenecking supply across variants and package sizes.

Henrique Braun took over as CEO at the end of March and has been direct about the gap. He said innovation "is not where it needs to be," and that the company needs to get closer to consumers and improve speed to market. That's a useful thing to hear from a new chief executive, rather than a defense of the status quo.