Coca-Cola's storied dividend has been increasing for decades.
Coca-Cola (KO -0.46%) 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.
How much dividend will I get from Coca-Cola? ›
Dividend Data
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 if I invested $1000 in Coca-Cola 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. 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.
Is Coca-Cola dividend worth it? ›
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.
What 10 stocks does Motley Fool recommend? ›
Mark Roussin, CPA has positions in AbbVie, Alphabet, Coca-Cola, Microsoft, Prologis, and Visa. The Motley Fool has positions in and recommends Alphabet, Chevron, Home Depot, Microsoft, NextEra Energy, Prologis, and Visa.
What is the dividend for Coca-Cola in 2024? ›
Key Highlights
In the quarter ending June 2024, Coca-cola Company, The has declared dividend of $0.49 - translating a dividend yield of 3.05%.
Which stock pays the highest dividend? ›
10 Best Dividend Stocks to Buy
- Verizon Communications VZ.
- Johnson & Johnson JNJ.
- Altria Group MO.
- Comcast CMCSA.
- Medtronic MDT.
- Duke Energy DUK.
- PNC Financial Services PNC.
- Kinder Morgan KMI.
Economic Moat Rating
We believe co*ke has built a wide moat around its global beverage operations, based on strong intangible assets and a significant cost advantage that will enable the company to deliver excess investment returns above its cost of capital over and beyond the next 20 years.
Is co*ke over or undervalued? ›
Intrinsic Value. The intrinsic value of one KO stock under the Base Case scenario is 52.8 USD. Compared to the current market price of 62.57 USD, Coca-Cola Co is Overvalued by 16%.
What are the cons of investing in Coca-Cola? ›
Con: The Soda Slide
Coca-Cola's most recent earnings reports prove that people are buying fewer sugary drinks and most analysts believe that trend is going to continue. While co*ke has worked to add new, on-trend beverage offerings to its repertoire, the fact remains that KO is only operating in the beverage space.
Dividend Summary
| Summary | Previous dividend | Next dividend |
|---|
| Per share | 48.5c | 48.5c |
| Declaration date | 15 Feb 2024 (Thu) | 02 May 2024 (Thu) |
| Ex-div date | 14 Mar 2024 (Thu) | 14 Jun 2024 (Fri) |
| Pay date | 01 Apr 2024 (Mon) | 01 Jul 2024 (Mon) |
2 more rowsThe 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.
How to earn $1000 per month from Coca-Cola Nyse KO stock? ›
If your target is to make $1,000 per month — $12,000 annually — from Coca-Cola Co.'s dividends, you must invest about $382,166. At $59.93 a share, this translates to holding about 6,377 shares. However, if you reduce your target to $200 per month, the investment value reduces to $76,433 or 1,276 shares.
How to calculate dividend payout? ›
To calculate the dividend payout ratio, the formula divides the dividend amount distributed in the period by the net income in the same period. For example, if a company issued $20 million in dividends in the current period with $100 million in net income, the payout ratio would be 20%.
