Nike Now Yields More Than Coca-Cola. Which Dow Dividend Stock Is the Better Buy in July?

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Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJack Delaney, The Motley FoolSun, July 5, 2026 at 5:50 PM GMT+2 4 min readWith the cost of living rising, more investors are recognizing the importance of generating income through dividend stocks. After all, those income payments can provide an extra cushion in retirement.That's why Nike (NYSE: NKE) is receiving increased attention. With a yield of 4% as of this writing, it's paying out more than Coca-Cola (NYSE: KO), a long-term holding for many dividend investors. The beverage maker is a Dividend King, earning that title by increasing its dividend payout for more than 50 consecutive years.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 »But as you'll see in a minute, there's a reason to look at more than just Nike's yield when making an investment decision.Image source: Getty Images.The appeal of an iconic brandWhen the Air Jordan was launched in 1985, it turned owning a pair of Nike shoes into a status symbol. In recent years, however, the cool factor around Nike has started to disappear.Consumer tastes have changed, and Nike has been criticized for relying too much on past success rather than innovation. The company also made it more difficult to find and buy its shoes, as it relied on a direct-to-consumer model rather than working with wholesale partners. Inventory has also built up, and Nike has had to rely on price cuts to move excessive merchandise.The stock price has suffered all along the way. As of this writing, it is down more than 70% over the past five years and has dropped 35% this year alone.The company is still trying to execute its turnaround plan, but it had a few bright spots in its recent earnings report. When Nike reported its fourth-quarter 2026 earnings, it beat expectations for both revenue and earnings per share. Even though sales slumped in China, it still reported $1.3 billion in sales in the country, beating expectations of $1.2 billion.Always counting on Coca-ColaIt's not in the most exciting of businesses, but Coca-Cola does offer consistency. Over the past 64 years, it has consecutively increased its dividend payouts. One company that understands the power of that consistency better than anyone is Berkshire Hathaway.Warren Buffett began buying shares of Coca-Cola in 1988, and Berkshire currently owns a 9.3% stake in the company. With this investment, Berkshire is generating hundreds of millions of dollars every quarter in dividends from Coca-Cola.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info