Coca-Cola Consolidated, Inc. Announces Second Quarter Dividend (2024)

FAQs

What is the special dividend for Coca-Cola? ›

Coca-Cola Consolidated, Inc. (NASDAQ: co*kE) declares a regular quarterly cash dividend of $0.50 per share and a special cash dividend of $16.00 per share, totaling $150 million. Both dividends are payable on February 9, 2024, to stockholders of record as of January 26, 2024.

To ensure the sustainability of dividends, a company must have robust growth metrics. Coca-Cola Co's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.

For perspective, the company had a market cap of $8 billion before the announcement. Therefore, its buyback plan represented nearly 40% of the company, which is unheard of. Buying back this much stock would greatly increase earnings per share (EPS). And that's why the stock was up even though growth is quite modest.

What is the dividend on $100 in shares of Coca-Cola? Coca-Cola paid a dividend of $0.46 per share ($1.84 annualized) as of mid-2023.

A massive passive income stream

Berkshire currently owns 400 million shares of Coca-Cola. This means that on an annualized basis, Warren Buffett's company generates $736 million in dividend income from the beverage giant. That is a huge passive income stream that likely explains why Buffett isn't exiting the position.

The famous dividend is safe and growing

It offers the best of both worlds: a solid 3.1% starting dividend yield and steady growth, headlined by its 62 years of consecutive increases. Investors who reinvest the dividends and wait patiently have gotten the most out of Coca-Cola stock.

Dividend 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%.

Fair Value Estimate for Coca-Cola

With its 3-star rating, we believe co*ke's stock is fairly valued compared with our long-term fair value estimate of $60 per share, which implies a 22 times multiple against our adjusted 2024 earnings estimate and a 2024 enterprise value/adjusted EBITDA multiple of 20 times.

The Coca-Cola Company (KO) is the parent entity that owns the brands and formulas, whereas Coca-Cola Consolidated (co*kE) is a regional bottler and distributor. Sources: Coca-Cola Consolidated, Inc.

Is Coca-Cola Consolidated a good stock? ›

The Coca-Cola Bottling Co. Consolidated stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average.

Total common and preferred stock dividends paid can be defined as the cash outflow for all company dividends paid out to preferred and common shareholders. CocaCola total common and preferred stock dividends paid for the quarter ending March 31, 2024 were $-0.099B, a 1.98% decline year-over-year.

Coca-Cola's dividends are a big reason for buying the stock. It offers the best of both worlds: a solid 3.1% starting dividend yield and steady growth, headlined by its 62 years of consecutive increases.