For investors seeking stable returns, stocks that can consistently pay dividends and continuously increase their dividend payouts are undoubtedly ideal choices. This article introduces two robust dividend stocks—Realty Income (O) and Coca-Cola (KO).
Realty Income is a real estate investment trust (REIT) focused on single-tenant retail properties. As the largest player in this sector, its portfolio comprises over 15,500 properties, with core assets including supermarkets, convenience stores, and home improvement shops—retail spaces frequently visited by consumers. Retail properties contribute 79% of rental income, with the remainder coming from industrial assets and specialty properties such as casinos and data centers. Its portfolio spans North America and Europe, achieving significant geographic diversification. Recently, the company has also begun providing investment management services to institutional investors, adding a new revenue stream.
Realty Income’s balance sheet holds an investment-grade rating, underpinning a solid financial foundation. During the financial crisis, its occupancy rate never fell below 96%. As of the end of March, the occupancy rate stood at a high of 98.9%. For the full year 2025, revenue grew 9% year-over-year, while funds from operations (FFO), a key earnings metric, increased by 11% to nearly $3.9 billion.
For dividend investors, Realty Income has achieved 31 consecutive years of annual dividend increases, with a compound annual growth rate of approximately 4.2%, slightly above the inflation rate, meaning the purchasing power of its dividends strengthens over time. Its current dividend yield is about 5.3%, far above the market average. Notably, Realty Income is one of the few companies that pays dividends monthly rather than the standard quarterly schedule—a practice it has maintained for over three decades.
Thanks to its recession-resistant tenant mix—consumers still need to buy groceries and essentials even during economic downturns—Realty Income performs well in both strong and weak economic environments. Its latest monthly dividend is approximately $0.27 per share.
Coca-Cola is one of the few “Dividend Kings” in the global market, meaning it has increased its dividend annually for at least 50 consecutive years. Its current quarterly dividend is $0.53 per share, with a yield of 2.6%, far above the average of 1.1% for S&P 500 constituents. The company has raised its dividend every year for 64 consecutive years.
Over the past several decades, Coca-Cola has launched and acquired numerous brands across bottled water, tea, juice, sports drinks, energy drinks, and coffee, while also improving its core soda products with healthier formulations and introducing smaller portion sizes and new flavors. Despite declining soda consumption rates in several major markets, this expansion strategy has enabled Coca-Cola to achieve sustained earnings growth. By selling only concentrate and syrup to independent bottlers, the company maintains high profit margins.
From 2020 to 2025, Coca-Cola’s comparable earnings per share grew from $1.95 to $3.00, while adjusted free cash flow increased from $8.7 billion to $11.4 billion. The company expects organic revenue growth of 4%-5% and comparable earnings per share growth of 8%-9% in 2026, demonstrating strong resilience against inflation and macroeconomic headwinds.
Currently, Coca-Cola’s forward price-to-earnings ratio is approximately 24, reflecting reasonable valuation. Its forward dividend yield of 2.6% is attractive.
In summary, both Realty Income and Coca-Cola are dividend stocks with strong long-term holding value. Both companies possess solid financial foundations, counter-cyclical business characteristics, and the ability to consistently increase dividends, making them suitable for investors seeking long-term, stable cash flow.
