Coca-Cola's storied dividend has been increasing for decades.
Coca-Cola (KO -0.37%) 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
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.
What would happen if I invested $1000 in co*ke 10 years ago? ›
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.
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.
What is the dividend for Coca-Cola in 2024? ›
History of Coca-cola Company, The's Dividend payments
| Ex/EFF DATE | TYPE | CASH AMOUNT |
|---|
| 14/06/2024 | CASH | $0.49 |
| 14/03/2024 | CASH | $0.49 |
| 30/11/2023 | CASH | $0.46 |
| 14/09/2023 | CASH | $0.46 |
1 more rowFor 2024, despite a softer consumer backdrop at the lower end in the United States and continued instability and macro challenges across Europe, Latin America, and Asia, we think co*ke's total beverage portfolio approach should continue to fuel volume and pricing growth, with help from product innovations and brand ...
What is Coca-Cola 10 year average return? ›
Definition of 10 Year Price Total Return
Ten Year Stock Price Total Return for Coca-Cola is calculated as follows: Last Close Price [ 63.91 ] / Adj Prior Close Price [ 29.84 ] (-) 1 (=) Total Return [ 114.2% ] Prior price dividend adjustment factor is 0.73.
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.
How much dividend does Coca-Cola pay Warren Buffett? ›
Coca-Cola: $736,000,000 in annual-dividend income
With Berkshire Hathaway owning 400 million shares of co*ke, it means Buffett's company is on pace to collect $736 million in annual-dividend income from the beverage behemoth.
Which is a better stock to buy, Coca-Cola or Pepsi? ›
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.
Is Coca-Cola a good dividend stock? ›
Coca-Cola Company (NYSE:KO) has announced annual dividend increases over the past 62 years without a break, an achievement which has made it one of the safest dividend stocks in the market.
Declares Special Cash Dividend, Payable on February 9, 2024. Coca-Cola Consolidated, Inc. announced that its Board of Directors has declared special cash dividend of $16.00 per share.
What is the dividend on 100 shares of Coca-Cola? ›
The Coca-Cola Company's ( KO ) dividend yield is 3.09%, which means that for every $100 invested in the company's stock, investors would receive $3.09 in dividends per year. The Coca-Cola Company's payout ratio is 73.72% which means that 73.72% of the company's earnings are paid out as dividends.
What is the latest dividend for Coca-Cola? ›
KO's annual dividend yield is 2.91%. When is Coca-Cola ex-dividend date? 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.
Is co*ke a good long-term stock? ›
Last but not least (and perhaps most important), The Coca-Cola Company is a dividend juggernaut. Not only has it paid one every quarter for decades now; it has raised its annualized payout every year for the past 62 years. And it's not like it can't afford to continue doing so.
What is the 12 month forecast for Coca-Cola stock? ›
Stock Price Forecast
The 11 analysts with 12-month price forecasts for KO stock have an average target of 68.27, with a low estimate of 60 and a high estimate of 72. The average target predicts an increase of 8.57% from the current stock price of 62.88.
What is the highest co*ke stock has ever been? ›
The all-time high Coca-Cola Consolidated stock closing price was 1036.01 on June 11, 2024. The Coca-Cola Consolidated 52-week high stock price is 1037.13, which is 0.1% above the current share price. The Coca-Cola Consolidated 52-week low stock price is 614.22, which is 40.7% below the current share price.
What if I invested $1000 in the S&P 500 10 years ago? ›
So imagine you put $1,000 into either fund 10 years ago. You'd be up to roughly $3,282 with VOO or $3,302 from SPY. That's not exactly wealthy, but it shows how you can more than triple your money by holding an asset with relatively low long-term risk.
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 is the return on investment for Coca-Cola? ›
0.19 = US$14b ÷ (US$99b - US$28b) (Based on the trailing twelve months to March 2024). Thus, Coca-Cola has an ROCE of 19%.
What will Coca-Cola be worth in 2030? ›
According to the latest long-term forecast, Coca-Cola price will hit $65 by the end of 2024 and then $70 by the middle of 2026. Coca-Cola will rise to $80 within the year of 2028, $95 in 2029, $100 in 2030, $110 in 2031 and $125 in 2034.
