Coca-Cola's storied dividend has been increasing for decades.
Coca-Cola (KO 1.60%) is a classic Dividend King stock. It has raised its dividend for the past 62 years consecutively, one of the longest streaks on the market. It's an established, blue chip industry leader, and in the early stages of the pandemic it demonstrated that it's committed to the dividend even under the most severe economic pressure.
Management approved the 62nd consecutive annual dividend hike in February. How much will it pay out to shareholders in 2024?
High yield, high payout ratio, high value
Coca-Cola is the largest all-beverage company in the world, with $46 billion in trailing-12-month sales. Although it's feeling the impact of inflation, it has maintained sales growth and robust profits through its dominant position and unparalleled distribution network. That allows it to maintain its dividend.
The company raised its dividend 5.4% in February to $0.485 per share quarterly, or $1.94 annually. At the current stock price, the dividend yields 3.1%, or about 2.5 times the average S&P 500 yield.
Coca-Cola isn't just a top dividend stock because of its high yield; the dividend is reliable and growing. co*ke paid $8 billion in dividends in 2023, with a payout ratio of 74%.
That's in management's ideal zone; Coca-Cola's chief draw for investors is its rock-solid passive income stream. In general, management devotes about three-quarters of its earnings to creating shareholder value through the dividend and keeps what's left to run the business. In 2020, it paid out nearly all of its earnings as dividends, raising the dividend despite a steep decline in sales and profits.
Management is guiding for increased sales and profits in 2024 despite continued pressure, and it doesn't look like there's any danger to its dividend. Coca-Cola has about 4.3 billion shares outstanding, and with the dividend at $1.94 per share, that will be nearly $8.4 billion in total dividend payments this year. Shareholders can expect that to continue and to benefit from Coca-Cola's robust dividend for the foreseeable future.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
FAQs
You would have more than doubled your money, with a total investment worth of $2,029.55. That's a 103% return, or a 7.23% annual rate of return. Interestingly, despite co*ke's dominance on the world stage, investing in co*ke's main rival, Pepsi, 10 years ago would have given you more pop for your buck.
How much dividend will I get from Coca-Cola? ›
Coca-Cola's upcoming ex-dividend date is on Jun 14, 2024. Coca-Cola shareholders who own KO stock before this date will receive Coca-Cola's next dividend payment of $0.48 per share on Jul 01, 2024.
Who pays higher dividend co*ke or Pepsi? ›
Coca-Cola and Pepsi are also both considered to have high-yield dividends -- a yield is how much investors get back compared to the value of the investment. The yield for Coca-Cola is over 3%, whereas the yield for Pepsi is just below that.
Is Coca-Cola a good stock to buy in 2024? ›
Shares of Coca-Cola have rallied in the first half of 2024. Solid growth and an expanding operating margin are driving profitability. The stock is still reasonably valued and may have more upside.
Is co*ke a good long-term stock? ›
Financial Strength
We believe co*ke has a strong balance sheet and ample liquidity to weather macroeconomic volatilities and invest for long-term growth.
How much stock does Warren Buffett own in Coca-Cola? ›
Warren Buffett Coca-Cola Co
Warren Buffett acquired 400 Million Coca-Cola shares worth $25.2 Billion. That's 6.95% of their entire equity portfolio (4th largest holding). The investor owns 9.10% of the outstanding Coca-Cola stock. The first Coca-Cola trade was made in Q4 1998.
What is the dividend for Ko 2024? ›
Historical Dividend Data
| Ex-Date | Record Date | Amount |
|---|
| Jun 14, 2024 | Jun 14, 2024 | 0.485 |
| Mar 14, 2024 | Mar 15, 2024 | 0.485 |
| Nov 30, 2023 | Dec 01, 2023 | 0.46 |
| Sep 14, 2023 | Sep 15, 2023 | 0.46 |
21 more rowsCoca-Cola Consolidated To Go Ex-Dividend On January 25th, 2024 With 0.5 USD Dividend Per Share And 16 USD Special Dividend Per Share.
Which company pays the highest dividend? ›
List of Highest Dividend Paying Stocks In India 2024
| Company | Dividend Percentage % | Ex-Date |
|---|
| HDFC Bank | 1950.00 | 10-05-2024 |
| TVS Holdings Ltd. | 1880.00 | 02-04-2024 |
| Bajaj Finance | 1800.00 | 21-06-2024 |
| Schaeffler India Ltd. | 1300.00 | 19-04-2024 |
23 more rowsDividend growth: PepsiCo wins
Dividend growth is one of them. Looking back since the peak of the Covid-19 crisis (see chart below), PepsiCo has increased its per-share dividend payments at a substantially faster pace than Coca-Cola: 10% today on a trailing 12-month basis versus co*ke's 5%.
Outlook and prices. Pepsi is the cheaper stock, but investors might still prefer paying the premium for co*ke over its less expensive rival. Sure, you can own Pepsi for 2.5 times sales, or less than half of co*ke's price-to-sales (P/S) ratio of 5.6. You'll get roughly the same 3% dividend yield in either case.
Why is Coca-Cola a good dividend stock? ›
The business generates tons of free cash flow, to the tune of $9.7 billion in 2023. Even after investing in capital expenditures, there are a lot of resources left to fund dividends. The current 3.2% yield is healthy. But even more impressive, Coca-Cola has increased its annual dividend payout in 62 straight years.
Is KO dividend safe? ›
Dividend Safety
At over 73%, The Coca-Cola Company (NYSE:KO)'s payout ratio is high, which has made some investors uneasy. However, The Coca-Cola Company (NYSE:KO) expects its earnings to grow and plans to buy back stock, which is going to further boost its dividend safety metrics.
Is KO a forever stock? ›
Are you on the hunt for a new "forever" dividend stock? If so, you've probably already stumbled across beverage behemoth Coca-Cola (NYSE: KO). The company's not only paid dividends like clockwork for decades now, but has also raised its annual dividend payout every year for the past 62 years.
How high can Coca-Cola stock go? ›
Average Price Target
Based on 16 Wall Street analysts offering 12 month price targets for Coca-Cola in the last 3 months. The average price target is $67.80 with a high forecast of $72.00 and a low forecast of $58.00. The average price target represents a 8.39% change from the last price of $62.55.
What is Coca-Cola 10 year average return? ›
Returns By Period
| Period | Return | Benchmark |
|---|
| 6 months | 8.43% | 15.10% |
| 1 year | 5.43% | 22.72% |
| 5 years (annualized) | 7.33% | 13.49% |
| 10 years (annualized) | 7.72% | 10.85% |
2 more rowsOver the past decade, you would have done even better, as the S&P 500 posted an average annual return of a whopping 12.68%. Here's how much your account balance would be now if you were invested over the past 10 years: $1,000 would grow to $3,300. $5,000 would grow to $16,498.
What if I invested $1000 in Tesla 10 years ago? ›
This means that your $1,000 10 years ago — technically, $1,002 — would have bought 60 shares of Tesla. As of Mar. 3, 2024, those 60 shares of Tesla would be worth $12,158.40. That marks a 28.342% annual rate of return.
What if you invested $1000 in Google 20 years ago? ›
If you had invested $1,000 in Google stock on Aug. 19, 2004, today, you would have $60,107. Likewise, if you had invested $1,000 in an index fund replicating Nasdaq, you would have $9,000.
