Coca-Cola Reports 52% Dividend Growth Over 10 Years, Promising Income Stability
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Stable Income Source: Coca-Cola (KO) owns 30 brands generating over $1 billion annually, and despite weak consumer spending, it paid out about two-thirds of its earnings in dividends over the past year, demonstrating strong cash flow and stability.
- Dividend Growth Potential: Coca-Cola has increased its quarterly dividend by 52% over the past decade, and it is expected to achieve its 64th consecutive annual dividend increase in Q1 2026, further boosting investor confidence.
- Market Performance Recovery: Despite sales challenges, Coca-Cola reported a 5% year-over-year revenue increase in Q3, attributed to improved marketing and innovation, with new beverages like Sprite + Tea and Bacardi Mixed with Coca-Cola resonating with consumers across North America, Mexico, and Europe.
- Optimistic Future Outlook: With a current quarterly dividend of $0.51 and a yield of 2.95%, Coca-Cola is likely to announce a slight increase for the next payment, reinforcing its position as a stable income source.
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: 69.370
Low
71.00
Averages
79.08
High
85.00
Current: 69.370
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.
