Coca-Cola (KO) Set for 64th Consecutive Dividend Increase Amid Strong Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Dividend Growth Continuation: Coca-Cola's Board of Directors raised its dividend last February, marking the 63rd consecutive year of increases, with expectations to continue this trend, reflecting the company's strong profitability and stable cash flow.
- Strong Profitability: Over the past five years, the company's quarterly operating margin has averaged 26.5%, and it is projected to generate $11.9 billion in free cash flow by 2026, ensuring sustainable dividend payments.
- Significant Brand Advantage: Coca-Cola's strong brand influence and exceptional distribution capabilities allow it to consistently raise product prices, a rare pricing power that enhances customer loyalty and maintains its competitive edge.
- Stable Market Performance: Despite a total return of 132% over the past decade, which falls short of the S&P 500's 330%, Coca-Cola's status as a mature business limits its growth potential, primarily attracting dividend-seeking investors.
Analyst Views on KO
Wall Street analysts forecast KO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KO is 79.08 USD with a low forecast of 71.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 71.240
Low
71.00
Averages
79.08
High
85.00
Current: 71.240
Low
71.00
Averages
79.08
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; 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 AdeS. 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.
