Coca-Cola's 63-Year Dividend Growth Streak
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Source: Fool
- Dividend Growth History: Coca-Cola has raised its dividend for 63 consecutive years, making it one of only 56 companies globally to earn the 'Dividend King' title, showcasing its exceptional management and financial resilience.
- Significant Earnings Growth: The company reported a remarkable adjusted quarterly earnings growth of 29.8%, far exceeding last year's 5%, providing strong support for future dividend increases.
- Operating Margin Improvement: Coca-Cola's operating margin has surged from 21.2% last year to 32%, indicating that the company retains a higher percentage of revenue as operating profit, thus freeing up more cash for dividends, acquisitions, and share buybacks.
- Share Buyback Program: Management has repurchased nearly $1 billion in shares over the past year, expected to reduce the outstanding share count by approximately 14 million shares, which will further enhance the sustainability of dividend growth, with the anticipated 64th dividend increase likely to send a strong market signal.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to fall
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 80.410
Low
71.00
Averages
79.33
High
85.00
Current: 80.410
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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- Healthcare Sector Stability: Johnson & Johnson and Medtronic also demonstrate strong performance in the healthcare sector, offering dividend yields of 2.3% and 3.6%, indicating that the inelastic demand for medical care allows these companies to remain profitable amid economic fluctuations.
- Valuation Insights: Coca-Cola's price-to-earnings ratio is slightly below its five-year average, suggesting reasonable pricing, while Procter & Gamble's P/E is even lower, indicating potential undervaluation that may attract value investors.
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- Consumer Resilience: Coca-Cola and Procter & Gamble, both Dividend Kings, maintain high dividend yields of 2.6% and 2.9% respectively, showcasing their robust business models and market adaptability, which help stabilize cash flow during economic downturns.
- Healthcare Sector Stability: Johnson & Johnson and Medtronic also demonstrate strong performance in the healthcare sector, offering dividend yields of 2.3% and 3.6%, indicating that the inelastic demand for medical care allows these companies to remain profitable amid economic fluctuations.
- Valuation Insights: Coca-Cola's price-to-earnings ratio is slightly below its five-year average, suggesting reasonable pricing, while Procter & Gamble's P/E is even lower, indicating potential undervaluation that may attract value investors.
- Portfolio Strategy: Given the increasing risk of economic recession, investors are advised to consider adding these resilient consumer and healthcare stocks to their portfolios to mitigate potential economic downturn risks.
See More
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- Resilient Sector Focus: In light of impending economic recessions, investors are advised to concentrate on resilient sectors such as consumer staples and healthcare, which maintain stable cash flows and profitability by selling essential everyday products even during downturns.
- Coca-Cola and Procter & Gamble: Both companies, recognized as 'Dividend Kings', offer dividend yields of 2.6% and 2.9% respectively, with their price-to-earnings ratios currently below their five-year averages, indicating that their stock prices are reasonably valued and suitable for income-seeking investors.
- Strong Healthcare Options: Johnson & Johnson and Medtronic also demonstrate resilience in the healthcare sector, with dividend yields of 2.3% and 3.6% respectively; while J&J's P/E is above its five-year average, its diversified operations provide investors with effective risk management.
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See More
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- Cash Reserve Status: Berkshire reported cash reserves of $397.4 billion as of March 31, up 6.5% from the end of last year, indicating a robust financial position amid market volatility, yet limiting its opportunities for investment in the rapidly growing AI sector.
- AI Investment Dynamics: New CEO Greg Abel tripled the company's stake in Alphabet to nearly $22 billion in Q1, making it the fifth-largest equity holding, although overall AI exposure remains relatively small, reflecting a cautious approach towards emerging technologies.
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See More
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- Stable Dividend Growth: Walmart has increased its dividend for 53 consecutive years, demonstrating its reliability as a Dividend King, and while the dividend yield is only 0.8%, the consistent returns attract long-term investors.
- Stock Price Volatility: Despite meeting expectations for Q1 FY2027, Walmart's stock price dropped over 9% from May 20 to 26 due to a cautious outlook, reflecting market concerns over rising fuel costs impacting operations and consumer spending.
- Technology-Driven Growth: The introduction of the Walmart+ subscription plan has proven successful, with members spending four times more than non-members, and the quarterly revenue from membership fees increased by double digits, showcasing effective service transformation.
- Advertising Revenue Surge: Advertising revenue grew by 36% this quarter, becoming a significant part of Walmart's income, and combined with online sales and subscription services, it creates a sustainable revenue growth model that enhances the company's future profitability.
See More
Walmart's Dividend Opportunities Amid Stock Price Fluctuations
- Reliability of Dividend Kings: Walmart, recognized as a Dividend King, has increased its dividend for 53 consecutive years, providing a 150% return to shareholders over the past five years, showcasing its potential for stable dividends and stock price appreciation, despite a recent stock price drop of over 9% due to cautious outlook.
- Earnings Performance and Market Reaction: Walmart's fiscal 2027 Q1 results largely met expectations, but the stock price fell due to below-expectation guidance for the upcoming quarter, with investors concerned about rising fuel costs impacting distribution and consumer spending.
- Technology-Driven Growth: Walmart enhances its competitiveness through technological innovations, with the Walmart+ membership program leading to members spending four times more than non-members, and a double-digit increase in membership fee revenue this quarter, indicating strong growth potential in subscription and advertising revenue.
- Optimistic Management Outlook: Despite challenges from rising fuel costs, Walmart's management expresses optimism about future business potential, with CFO John Rainey stating that the excitement about the business is at its highest in years, reflecting confidence in sustained growth and dividend payouts.
See More
Market Faces Uncertainty; Investors Should Exercise Caution
- High Market Valuation: The S&P 500 index's current P/E ratio stands at 27.5, significantly above the historical average of 19, indicating that the market may not be fully accounting for potential summer economic pressures, prompting investors to approach with caution regarding possible corrections.
- Rising Energy Prices: Geopolitical conflicts in the Middle East have sharply increased energy prices, with oil executives warning that the market is neglecting energy fundamentals, suggesting it may take months for markets to normalize, which could further elevate global inflation and recession fears.
- Berkshire's Cash Reserves: Berkshire Hathaway reported nearly $400 billion in cash at the end of Q1 2026, reflecting a cautious stance amid high market valuations, potentially providing a safety margin for conservative investors.
- Coca-Cola Investment Opportunity: Coca-Cola's P/E ratio is below its five-year average, and while not cheap, its 2.6% dividend yield offers investors a reliable cash flow, making it an attractive option for those seeking safety in a potential bear market.
See More
