Coca-Cola Increases Dividend for 64th Consecutive Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy KO?
Source: NASDAQ.COM
- Dividend Increase: Coca-Cola's board has approved a quarterly dividend increase to $0.53 per share, marking the 64th consecutive year of dividend hikes, which underscores the company's long-term commitment to its shareholders.
- Investment Returns: At the current stock price of $75.91, a $5,000 investment would allow the purchase of 66 shares, generating approximately $140 in annual passive income, highlighting its appeal as a stable income source.
- Market Performance: Despite Coca-Cola's strong dividend performance, its trailing 10-year total return significantly lags behind the S&P 500 index, indicating limited potential for capital growth and suggesting that investors should set realistic expectations.
- Brand Strength: Coca-Cola's robust brand and pricing power demonstrate its ability to maintain profitability, and its long operational history provides stability, even amidst technological disruptions affecting other companies.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 78.180
Low
71.00
Averages
79.33
High
85.00
Current: 78.180
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and Santa Clara. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Chevron's Outlook: Chevron (CVX) remains a key holding for Buffett, offering a forward-looking dividend yield of 3.7%; despite pressures from the transition to renewables, the IEA projects oil consumption will continue to grow through 2050, supporting its profitability.
- McDonald's Business Model: Although McDonald's (MCD) is not currently in Buffett's portfolio, its strong brand, reliable cash flow, and a current dividend yield of 2.4% make it a smart investment choice, having raised dividends for 49 consecutive years.
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See More
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- Chevron's Investment Potential: Despite pressures from the transition to renewable energy, Chevron's forward-looking dividend yield stands at 3.7%, and the International Energy Agency projects crude oil consumption will continue to grow through 2050, supporting its future profitability and aligning with Buffett's investment criteria.
- McDonald's Business Model: McDonald's operates primarily as a rental real estate company, with 95% of its restaurants run by franchisees, ensuring stable rental income that has allowed it to raise its per-share dividend for 49 consecutive years, with a forward-looking yield of 2.4%.
- Investment Opportunities in Market Pullbacks: While the market may face short-term volatility, seasoned investors believe that any short-term dip presents a long-term buying opportunity, as Buffett's investment strategy emphasizes increasing stakes in quality dividend stocks during market corrections.
See More
