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Two Dividend Plays That Could Double Your Portfolio in One Page

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  Published in Stocks and Investing on Sunday, December 14th 2025 at 15:15 GMT by The Motley Fool

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A concise guide to two dividend plays that could double your portfolio – in just one page

In the December 2025 edition of The Motley Fool, the authors unveil a “two‑stock” dividend strategy that promises both income and upside. Their premise is simple: pick a couple of solid, high‑yield companies that have a strong dividend track record, and double your position just before the ex‑dividend date. By doing so you lock in the cash flow and still benefit from any subsequent share‑price appreciation. Below is a thorough breakdown of the two stocks highlighted in the article, the rationale for each, and the supplemental information that the authors link out to for deeper context.

1. The Coca‑Cola Company (KO) – “The Classic Dividend King”

Why KO?

• Dividend History: Coca‑Cola has raised its dividend for 58 consecutive years, a record that places it among the most reliable “Dividend Kings.”
• Yield & Growth: The current yield sits at roughly 3.2 %, with a dividend growth rate averaging 7 % over the last decade.
• Financial Strength: KO’s revenue is consistently stable, and the company has a low debt‑to‑equity ratio, which the article stresses as a sign of resilience in volatile markets.
• Cash Flow: The company’s operating cash flow is robust and has remained above the dividend payment for many years, giving the authors confidence that the dividend will survive even if market conditions deteriorate.

What the article links to for further reading:

• Investor Relations: A link to Coca‑Cola’s own investor site that details the company’s quarterly earnings, payout ratio, and future dividend projections.
• Dividend Aristocrats Guide: A supplementary Motley Fool piece that explains why dividend aristocrats like KO are attractive for long‑term, income‑focused portfolios.
• Tax‑Efficient Investing: A reference article on how dividends are taxed and why holding KO in a tax‑advantaged account (e.g., an IRA) can preserve more of the yield.

Timing & Strategy

The authors urge readers to purchase KO shares “just before the ex‑dividend date.” Because the dividend is paid out 30 days after the ex‑date, buying at that window captures the dividend and still allows the share price to recover in the following days, effectively giving you a “double” benefit – you get the cash and the equity upside.

2. Texas Instruments Incorporated (TXN) – “The High‑Growth Dividend Play”

Why TXN?

• Technological Edge: TXN is a leading provider of analog and embedded processing chips, a sector that is growing faster than the macro economy.
• Yield & Growth: With a yield around 2.9 % and a consistent dividend‑increase streak of 25 years, TXN offers both income and compound growth.
• Margins & Balance Sheet: The company boasts some of the highest operating margins in the semiconductor space (around 42 %) and a cash‑rich balance sheet with little short‑term debt.
• Future Outlook: Analysts predict that TXN’s demand will continue to rise as automotive and consumer electronics shift toward connected, AI‑driven systems.

What the article links to for further reading:

• Company Financials: Direct link to TXN’s quarterly earnings releases, including notes on capital allocation and dividend policy.
• Semiconductor Industry Trends: A link to a Motley Fool special report on the future of chips, explaining how TXN is positioned for growth.
• Dividend Growth Investing: A foundational article outlining the benefits of a dividend‑growth strategy, which underpins the recommendation to double up on TXN.

Timing & Strategy

Similar to KO, the authors advise buying TXN shares right before the ex‑dividend date. Because TXN’s share price is more sensitive to earnings reports, timing the purchase also allows investors to capture any potential price rally that follows the dividend payment and earnings release cycle.

Why “Double Up” is Worth Considering

The article frames the “double‑up” strategy as a simple, low‑risk way to enhance both income and capital gains:

1. Immediate Cash Flow – You receive the dividend shortly after purchase, which can be reinvested or used to cover expenses.
2. Potential Price Recovery – After the dividend payout, shares often rebound, providing a modest capital gain in addition to the dividend.
3. Tax Efficiency – For qualified dividends (which KO and TXN qualify for), the tax rate is 0 %–15 % for most investors, especially those in lower brackets. Holding the shares in a tax‑advantaged account can further reduce the tax drag.
4. Portfolio Diversification – By choosing one consumer staple (KO) and one technology leader (TXN), investors balance stability with growth potential, aligning with the authors’ recommendation for a diversified income portfolio.

Caveats and Risk Factors

The authors do not shy away from caution. They remind readers that:

• Dividend Policy is not Guaranteed: Even with a long track record, companies can cut or suspend dividends in downturns.
• Interest‑Rate Sensitivity: Rising rates can compress yields and push valuations down, especially in the tech sector.
• Geopolitical Risks: For Coca‑Cola, supply chain disruptions and commodity price swings can impact margins.
• Regulatory Risk: TXN faces increasing scrutiny over chip export controls and antitrust investigations.

They advise investors to keep a close eye on quarterly reports and to remain open to re‑balancing the portfolio if the risk profile changes.

The Supplemental Readings – A Quick Guide

1. Dividend Aristocrats vs. Dividend Kings – An article that delineates the difference between the two, and why some investors might prefer one over the other.
2. How to Build a Dividend‑Focused Portfolio – A step‑by‑step guide that explains asset allocation, risk tolerance, and the importance of a “core‑satellite” strategy.
3. Tax‑Efficient Investing in Dividends – A deep dive into the tax treatment of qualified vs. non‑qualified dividends and how to structure your holdings accordingly.
4. Semiconductor Outlook 2025‑2030 – A market research report that forecasts demand growth and outlines key players, with TXN as a highlight.

Each of these links (which appear in the original article) offers readers an opportunity to dig deeper into the metrics, forecasts, and historical performance that justify the recommendation to double up on KO and TXN.

Bottom Line

The Motley Fool’s December 2025 “2 Dividend Stocks to Double‑Up” article is a concise, well‑structured recommendation for income investors who are comfortable with a “buy‑and‑hold” philosophy. By focusing on Coca‑Cola’s reliable dividend history and Texas Instruments’ high‑growth tech exposure, the article presents a balanced playbook that offers both immediate cash flow and potential capital appreciation. It also gives readers the necessary context, from company financials to industry outlooks, via direct links to investor relations pages and deeper Motley Fool resources. Whether you’re a seasoned income professional or a new investor looking to build a solid dividend foundation, this summary captures the key take‑aways and provides a roadmap to apply the “double‑up” strategy effectively.