These 2 Dividend Kings Just Declared Dividend Raises. Should You Buy One or Both?

It isn't very often that two members of stock market royalty declare dividend raises on exactly the same day.

By "royalty," I'm referring to the ever-regal Dividend Kings, that ultra-exclusive group of S&P 500 index stocks that have enacted dividend raises at least once annually for a minimum of 50 years running. On Feb. 20, crown-wearers Walmart (NYSE: WMT) and Coca-Cola (NYSE: KO) both engaged in this long-standing yearly ritual. Let's take a look at each raise.

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1. Walmart

The more substantial of the two lifts belongs to Walmart, which upped its payout by 13% to a new quarterly level of almost $0.24 per share.

That accompanied the big retailer's final earnings report for its fiscal 2025, which saw its key fourth-quarter numbers squeak past the consensus analyst estimates to notch a pair of slight beats. Revenue grew by 4% year over year -- a respectable figure, given its size and scope -- to nearly $180 billion for the period. Headline net income dipped by roughly the same percentage.

Within those numbers were some impressive increases. The company's still going gangbusters with e-commerce sales. These rose a sturdy 16% worldwide, helped in no small part by an efficient pickup and delivery system that's clearly getting the goods into customer hands quickly.

However, management's guidance turned some away from the stock. For the entirety of fiscal 2026, it's expecting a 3% to 4% increase on the top line -- nothing outrageous or shocking there. But its $2.50 to $2.60 per share non-GAAP (adjusted) net income projection fell well short of the average analyst estimate of $2.77. That $2.60 peak wouldn't be a vast improvement over 2025's $2.51, either.

Still, Walmart is a pace-setter in big retail, with innovation that's second to none in the industry, and a way of pushing the fundamentals higher even in trying times. And that 13% dividend raise sure isn't anything to sneeze at. There will almost certainly be more where that came from.

Walmart's first lifted payout will be dispensed on April 7 to investors of record as of March 21. At the current share price, it would yield slightly under 1%.

2. Coca-Cola

Coca-Cola might be the runner-up in our two-company dividend raise sweepstakes, but it still enacted a meaningful lift. Consecutive dividend raise No. 63 will see its quarterly disbursement rise by 5% to $0.51 per share.

As the owner of the most famous and popular soft drink by far, the company has a bedrock asset that is cheap to make and easy to sell. It's little wonder that its manufacturer has been swimming in cash for decades. With this, it has disbursed many greenbacks to keep investors happy. Management wasn't shy to point out that it's paid a staggering $93 billion-plus in dividends since the start of 2010.

Coca-Cola's fourth quarter was a nice cap on its 2024. The period saw the beverage giant improve its net revenue by 6% over the same quarter of 2023, to $11.5 billion. Better yet, it bumped its adjusted net income 12% higher to $0.55 per share. Management has concentrated on cost efficiencies, an effort reflected in the double-digit profitability bounce.

For the entirety of 2025, Coca-Cola guided for higher revenue growth, at 5% to 6% over the preceding year. Adjusted per-share net income should rise more modestly, by 2% to 3%.

Income stocks like Coca-Cola tend to be slow growers, so I think as long as the numbers are improving, many of the company's bulls will be satisfied. This is a business that's as reliable as anything out there, and it will be a force for a great many years to come. It's also a stock well worth owning.

The new dividend is to be paid on April 1 to shareholders of record as of March 14. It yields a rather fizzy 2.9% at the most recent closing stock price.

Should you invest $1,000 in Walmart right now?

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.