Forget High-Yield Traps: Coca-Cola Is the Best Dividend Stock

It can be tempting for investors to buy stocks with high dividend yields. That's real passive income they'll collect in the near term. And even if a company is facing complications that have crushed its stock price, that doesn't mean it'll necessarily have to cut its dividend in the near term. The company could still have plenty of cash and generate ample free cash flow to cover the dividend for a few more quarters or years.However, this situation is commonly known as a yield trap, and it defeats the main purpose of buying a dividend stock in the first place: reliable passive income.I think investors should avoid these high-yield traps and simply put their money in Coca-Cola (NYSE: KO), a company that pays a solid yield, has a strong business, and a terrific track record. It's what makes Coca-Cola one of the best dividend stocks around.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool