Coca-Cola's Steady Dividend Income Stream
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 56 minutes ago
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Source: Fool
- Stable Dividend Yield: Coca-Cola currently pays a quarterly dividend of $0.53, translating to an annual payout of $2.12, with a dividend yield of 2.76%, significantly outperforming the S&P 500 index, highlighting its appeal as a top dividend stock.
- Investment Demand Insight: Investors looking to generate $10,000 in annual income from Coca-Cola would need to invest over $362,000 to acquire 4,717 shares, underscoring the importance of its stable income stream for income-focused investors.
- Consistent Dividend Growth: Coca-Cola has raised its quarterly dividend for 64 consecutive years, demonstrating strong financial health and commitment to shareholders, with expectations that this trend will continue, bolstering investor confidence.
- Strong Financial Performance: In Q1 of fiscal 2026, the company reported $4 billion in net income on $12.5 billion in revenue, achieving a 32% margin, indicating Coca-Cola's capacity to continue returning capital to shareholders while maintaining stable product demand against macroeconomic fluctuations.
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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: 76.820
Low
71.00
Averages
79.33
High
85.00
Current: 76.820
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.
Coca-Cola Outperforms S&P 500 in 2026
- Dividend Performance: Coca-Cola, known as a 'Dividend King', achieved over 12% returns in 2026, outperforming the S&P 500 by nearly a percentage point, demonstrating its stable business model and strong market demand.
- Growth Potential Analysis: Analysts estimate Coca-Cola's earnings per share will grow at an average rate of 7% to 8% annually over the next three to five years, and despite its current P/E ratio nearing 25, its stable cash flow and brand strength still make it attractive.
- Market Positioning Advantage: Coca-Cola's products are widely recognized and consumed, covering a range of beverages, and it shows resilience during economic downturns, further solidifying its position in investors' minds.
- Cautious Investment Advice: Although Coca-Cola is a blue-chip stock, its current PEG ratio exceeds 3.0, suggesting investors should wait for a more favorable valuation, targeting a P/E ratio around 20, with an estimated share price of $65 for better future returns.
See More
Coca-Cola's Steady Dividend Income Stream
- Stable Dividend Yield: Coca-Cola currently pays a quarterly dividend of $0.53, translating to an annual payout of $2.12, with a dividend yield of 2.76%, significantly outperforming the S&P 500 index, highlighting its appeal as a top dividend stock.
- Investment Demand Insight: Investors looking to generate $10,000 in annual income from Coca-Cola would need to invest over $362,000 to acquire 4,717 shares, underscoring the importance of its stable income stream for income-focused investors.
- Consistent Dividend Growth: Coca-Cola has raised its quarterly dividend for 64 consecutive years, demonstrating strong financial health and commitment to shareholders, with expectations that this trend will continue, bolstering investor confidence.
- Strong Financial Performance: In Q1 of fiscal 2026, the company reported $4 billion in net income on $12.5 billion in revenue, achieving a 32% margin, indicating Coca-Cola's capacity to continue returning capital to shareholders while maintaining stable product demand against macroeconomic fluctuations.
See More
Coca-Cola Dividend Investment Analysis
- Stable Dividend Income: Coca-Cola pays a quarterly dividend of $0.53, equating to an annual payout of $2.12, with a current stock price of $76.82, requiring an investment of over $362,000 to acquire 4,717 shares for generating $10,000 in annual income, highlighting its appeal as a steady income source.
- Dividend Yield Advantage: With a dividend yield of 2.76%, Coca-Cola significantly outperforms the S&P 500 index, indicating its competitive position in the market, and the company has raised its quarterly payout for 64 consecutive years, showcasing robust financial health and commitment to shareholder returns.
- Strong Financial Performance: In the first quarter of fiscal 2026, Coca-Cola reported a net income of $4 billion on revenues of $12.5 billion, resulting in a 32% margin, providing a solid foundation for ongoing dividend payments and demonstrating the company's ability to maintain stable operations amid economic fluctuations.
- Stable Market Demand: Given the minimal cyclicality of demand for Coca-Cola's products, the company's operations remain stable, allowing for continued dividend payments regardless of macroeconomic conditions, which enhances investor confidence in its long-term investment potential.
See More
Recommended High-Yield ETF: Schwab U.S. Dividend Equity ETF
- Income and Growth Balance: The Schwab U.S. Dividend Equity ETF boasts a dividend yield of 3.25% and has risen 19% year-to-date in 2026, delivering slightly lower growth than the S&P 500 while providing nearly three times the dividend income, indicating a strong balance between income and growth.
- Expense Ratio Advantage: With an expense ratio of just 0.06%, investors pay only $6 for every $10,000 invested, making it competitive among similar products and enhancing net returns for investors.
- Robust Portfolio Composition: The ETF tracks the Dow Jones U.S. Dividend 100 Index, comprising 100 stocks with a history of at least 10 years of dividend payments, ensuring financial health among constituents and reducing the risk of dividend cuts due to financial troubles, thus enhancing long-term investment safety.
- Diversified Holdings Structure: The top ten holdings account for about 43% of the ETF, with 18% in consumer defensive stocks, 15% in energy, and 18% in healthcare, providing a diversified allocation that helps maintain stability and risk resistance in the event of a market pullback.
See More
Analysis of Schwab U.S. Dividend Equity ETF
- Dividend Yield Advantage: The Schwab U.S. Dividend Equity ETF boasts a dividend yield of 3.25%, approximately three times that of the S&P 500, indicating its stability during market fluctuations and appealing to income-seeking investors.
- Strong Performance: With a three-year average annual return of 15.09%, the ETF, while lower than the S&P 500's 22.44%, outperforms many other dividend-focused funds, demonstrating a solid balance between income and growth.
- Low Expense Ratio: The ETF's expense ratio stands at just 0.06%, meaning investors pay only $6 for every $10,000 invested, enhancing its cost-effectiveness and attractiveness for long-term investors.
- Diversified Portfolio: Tracking the Dow Jones U.S. Dividend 100 Index, the ETF includes 100 stocks with a minimum 10-year dividend payment history, with about 43% of its assets in the top 10 holdings, showcasing a strong allocation in defensive and growth sectors to adapt to future market volatility.
See More
Markel Group Q4 2025 Earnings Beat Estimates Significantly
- Strong Earnings Report: Markel Group reported Q4 2025 EPS of $48.75, significantly exceeding the expected $25.73, demonstrating robust profitability under its insurance float model and reinforcing its competitive position in the market.
- Operating Income Growth: In 2025, Markel achieved operating income of $3.2 billion, with adjusted operating income surpassing $2.3 billion, indicating solid growth across all reportable segments and highlighting the company's operational strength.
- Increased Shareholder Returns: Markel repurchased $429.5 million in shares during Q4 2025, with shareholders' equity reaching $18.6 billion, reflecting the company's commitment to shareholder returns and its strong cash flow and capital allocation capabilities.
- Improved Combined Ratio: The combined ratio improved from 95.5% to 94.6%, indicating effective risk management and cost control, which enhances the company's long-term profitability and market appeal.
See More
Coca-Cola Outperforms S&P 500 in 2026
- Dividend Performance: Coca-Cola, known as a 'Dividend King', achieved over 12% returns in 2026, outperforming the S&P 500 by nearly a percentage point, demonstrating its stable business model and strong market demand.
- Growth Potential Analysis: Analysts estimate Coca-Cola's earnings per share will grow at an average rate of 7% to 8% annually over the next three to five years, and despite its current P/E ratio nearing 25, its stable cash flow and brand strength still make it attractive.
- Market Positioning Advantage: Coca-Cola's products are widely recognized and consumed, covering a range of beverages, and it shows resilience during economic downturns, further solidifying its position in investors' minds.
- Cautious Investment Advice: Although Coca-Cola is a blue-chip stock, its current PEG ratio exceeds 3.0, suggesting investors should wait for a more favorable valuation, targeting a P/E ratio around 20, with an estimated share price of $65 for better future returns.
See More
Coca-Cola's Steady Dividend Income Stream
- Stable Dividend Yield: Coca-Cola currently pays a quarterly dividend of $0.53, translating to an annual payout of $2.12, with a dividend yield of 2.76%, significantly outperforming the S&P 500 index, highlighting its appeal as a top dividend stock.
- Investment Demand Insight: Investors looking to generate $10,000 in annual income from Coca-Cola would need to invest over $362,000 to acquire 4,717 shares, underscoring the importance of its stable income stream for income-focused investors.
- Consistent Dividend Growth: Coca-Cola has raised its quarterly dividend for 64 consecutive years, demonstrating strong financial health and commitment to shareholders, with expectations that this trend will continue, bolstering investor confidence.
- Strong Financial Performance: In Q1 of fiscal 2026, the company reported $4 billion in net income on $12.5 billion in revenue, achieving a 32% margin, indicating Coca-Cola's capacity to continue returning capital to shareholders while maintaining stable product demand against macroeconomic fluctuations.
See More
Coca-Cola Dividend Investment Analysis
- Stable Dividend Income: Coca-Cola pays a quarterly dividend of $0.53, equating to an annual payout of $2.12, with a current stock price of $76.82, requiring an investment of over $362,000 to acquire 4,717 shares for generating $10,000 in annual income, highlighting its appeal as a steady income source.
- Dividend Yield Advantage: With a dividend yield of 2.76%, Coca-Cola significantly outperforms the S&P 500 index, indicating its competitive position in the market, and the company has raised its quarterly payout for 64 consecutive years, showcasing robust financial health and commitment to shareholder returns.
- Strong Financial Performance: In the first quarter of fiscal 2026, Coca-Cola reported a net income of $4 billion on revenues of $12.5 billion, resulting in a 32% margin, providing a solid foundation for ongoing dividend payments and demonstrating the company's ability to maintain stable operations amid economic fluctuations.
- Stable Market Demand: Given the minimal cyclicality of demand for Coca-Cola's products, the company's operations remain stable, allowing for continued dividend payments regardless of macroeconomic conditions, which enhances investor confidence in its long-term investment potential.
See More
Recommended High-Yield ETF: Schwab U.S. Dividend Equity ETF
- Income and Growth Balance: The Schwab U.S. Dividend Equity ETF boasts a dividend yield of 3.25% and has risen 19% year-to-date in 2026, delivering slightly lower growth than the S&P 500 while providing nearly three times the dividend income, indicating a strong balance between income and growth.
- Expense Ratio Advantage: With an expense ratio of just 0.06%, investors pay only $6 for every $10,000 invested, making it competitive among similar products and enhancing net returns for investors.
- Robust Portfolio Composition: The ETF tracks the Dow Jones U.S. Dividend 100 Index, comprising 100 stocks with a history of at least 10 years of dividend payments, ensuring financial health among constituents and reducing the risk of dividend cuts due to financial troubles, thus enhancing long-term investment safety.
- Diversified Holdings Structure: The top ten holdings account for about 43% of the ETF, with 18% in consumer defensive stocks, 15% in energy, and 18% in healthcare, providing a diversified allocation that helps maintain stability and risk resistance in the event of a market pullback.
See More
Analysis of Schwab U.S. Dividend Equity ETF
- Dividend Yield Advantage: The Schwab U.S. Dividend Equity ETF boasts a dividend yield of 3.25%, approximately three times that of the S&P 500, indicating its stability during market fluctuations and appealing to income-seeking investors.
- Strong Performance: With a three-year average annual return of 15.09%, the ETF, while lower than the S&P 500's 22.44%, outperforms many other dividend-focused funds, demonstrating a solid balance between income and growth.
- Low Expense Ratio: The ETF's expense ratio stands at just 0.06%, meaning investors pay only $6 for every $10,000 invested, enhancing its cost-effectiveness and attractiveness for long-term investors.
- Diversified Portfolio: Tracking the Dow Jones U.S. Dividend 100 Index, the ETF includes 100 stocks with a minimum 10-year dividend payment history, with about 43% of its assets in the top 10 holdings, showcasing a strong allocation in defensive and growth sectors to adapt to future market volatility.
See More
Markel Group Q4 2025 Earnings Beat Estimates Significantly
- Strong Earnings Report: Markel Group reported Q4 2025 EPS of $48.75, significantly exceeding the expected $25.73, demonstrating robust profitability under its insurance float model and reinforcing its competitive position in the market.
- Operating Income Growth: In 2025, Markel achieved operating income of $3.2 billion, with adjusted operating income surpassing $2.3 billion, indicating solid growth across all reportable segments and highlighting the company's operational strength.
- Increased Shareholder Returns: Markel repurchased $429.5 million in shares during Q4 2025, with shareholders' equity reaching $18.6 billion, reflecting the company's commitment to shareholder returns and its strong cash flow and capital allocation capabilities.
- Improved Combined Ratio: The combined ratio improved from 95.5% to 94.6%, indicating effective risk management and cost control, which enhances the company's long-term profitability and market appeal.
See More
