To The Moon

Some meme stock investors are gambling on shares of Redbox Entertainment$Redbox Entertainment Inc.(RDBX)$ (RDBX39.39%)becoming the next GameStop$GameStop(GME)$ (GME0.09%)orAMC Entertainment Holdings$AMC Entertainment(AMC)$ (AMC-2.74%). The problem is, the deck is already stacked against them.

Shares of Redbox, which operates kiosks for renting DVDs, are currently trading at over $9, even though the company has agreed to be acquired by Chicken Soup for the Soul Entertainment$Chicken Soup For The Soul Entertainment Inc.(CSSE)$ (CSSE19.84%)in an all-stock deal that values the shares at about $0.61 at the time of this writing.

Instead of wishing upon a star with Redbox, investors looking to grow their portfolios would be better served by building lasting wealth with dividend stocks, a much sounder bet.Dividend investinghas historically been one of the best ways to create long-term wealth. Because returns are generated from both dividend payments and stock price appreciation, dividend investing has beaten theS&P 500over time. Furthermore, reinvesting these dividends can boost your returns even more.

Here is rock-solid dividend stock that are better ways to grow your portfolio than gambling on Redbox.

The economy ebbs and flows, but Coca-Cola$Coca-Cola(KO)$ (KO-0.63%)keeps selling beverages and keeps raising its dividend. Its dividend is as steady as they come, and the payout has increased consistently over time. In fact, Coca-Cola is aDividend King, having raised its payout for an incredible 60 years in a row.

The stock currently yields 2.8%, and the only reason that it isn't higher is because shares have gained 3% year to date, at a time when many other stocks have fallen in a challenging market. For comparison, the Dow is down 13% over the same time frame, and the S&P 500 is down nearly 18%. Seeing the yield falling because the stock price is increasing is a good problem to have, as stock price appreciation and dividend income both add to the total return for your portfolio.

As a consumer-staple company selling a product that consumers buy habitually, Coca-Cola is a fairly defensive name to own in times of economic uncertainty, and there is minimal risk of its dividend being affected. Keep in mind that there is more to Coca-Cola than just its flagship product. The company continues to expand into other areas and has been successful in acquiring and growing other brands.

For example, its Topo Chico acquisition has been a major success. Coca-Cola acquired the brand in 2017 and has turned its mineral water from a regional favorite in Texas and the Southwest into a major hit across the United States.