Coca-Cola's storied dividend has been increasing for decades.
Coca-Cola (KO -0.43%) 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 is the dividend for Coca-Cola in 2024? ›
The Coca-Cola Company Declares Regular Quarterly Dividend, Payable July 1, 2024. The Coca-Cola Company declared a regular quarterly dividend of 48.5 cents per common share, payable July 1, 2024 to shareowners of record of the company as of the close of business June 14, 2024.
Is Coca-Cola dividend worth it? ›
The company spent $2.3 billion on share buybacks last year. And it currently pays a dividend that yields 3.2%, which is enticing to income-seeking investors. That dividend has been raised consistently every year for more than 50 years, qualifying it as a Dividend King.
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The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, and Uber Technologies. The Motley Fool recommends the following options: short June 2024 $67.50 calls on PayPal. The Motley Fool has a disclosure policy.
What are the three dividend stocks to buy and hold forever? ›
Three stocks with attributes that make them rock-solid candidates to buy and hold forever include:
- JPMorgan Chase (JPM)
- Home Depot (HD)
- Procter & Gamble (PG)
The Company normally pays dividends four times a year, usually April 1, July 1, October 1 and December 15. Shareowners of record can elect to receive their dividend payments electronically or by check in the currency of their choice.
What is the latest dividend for Coca-Cola? ›
Coca-Cola's previous ex-dividend date was on Mar 14, 2024. Coca-Cola shareholders who own KO stock before this date received Coca-Cola's last dividend payment of $0.48 per share on Apr 01, 2024. KO's next ex-dividend date has not been announced yet.
Is Coca-Cola a safe dividend stock? ›
Coca-Cola (KO -0.43%) is often considered a safe blue chip stock. It owns the world's top soda brand, it generates plenty of cash, and it pays consistent dividends.
Is Coca-Cola dividend sustainable? ›
Coca-Cola's Dividend Is Well Covered By Earnings
The next year is set to see EPS grow by 27.6%. Assuming the dividend continues along recent trends, we think the payout ratio could be 62% by next year, which is in a pretty sustainable range.
Why Coca-Cola is the best 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.
The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, and Uber Technologies. The Motley Fool recommends the following options: short March 2024 $67.50 calls on PayPal.
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Dividend Summary
| Status | Type | Pay date |
|---|
| Paid | Quarterly | 15 Dec 2021 |
| Paid | Quarterly | 01 Oct 2021 |
| Paid | Quarterly | 01 Jul 2021 |
| Paid | Quarterly | 01 Apr 2021 |
49 more rowsThe current TTM dividend payout for CocaCola (KO) as of April 30, 2024 is $1.94. The current dividend yield for CocaCola as of April 30, 2024 is 3.14%.
How long has Pepsi paid dividends? ›
Dividend payment history: PEP has a long history of paying dividends and has consistently increased its dividend payout for 52 consecutive years.
