Coca-Cola's storied dividend has been increasing for decades.
Coca-Cola (KO 0.58%) is a classic Dividend King stock. It has raised its dividend for the past 62 years consecutively, one of the longest streaks on the market. It's an established, blue chip industry leader, and in the early stages of the pandemic it demonstrated that it's committed to the dividend even under the most severe economic pressure.
Management approved the 62nd consecutive annual dividend hike in February. How much will it pay out to shareholders in 2024?
High yield, high payout ratio, high value
Coca-Cola is the largest all-beverage company in the world, with $46 billion in trailing-12-month sales. Although it's feeling the impact of inflation, it has maintained sales growth and robust profits through its dominant position and unparalleled distribution network. That allows it to maintain its dividend.
The company raised its dividend 5.4% in February to $0.485 per share quarterly, or $1.94 annually. At the current stock price, the dividend yields 3.1%, or about 2.5 times the average S&P 500 yield.
Coca-Cola isn't just a top dividend stock because of its high yield; the dividend is reliable and growing. co*ke paid $8 billion in dividends in 2023, with a payout ratio of 74%.
That's in management's ideal zone; Coca-Cola's chief draw for investors is its rock-solid passive income stream. In general, management devotes about three-quarters of its earnings to creating shareholder value through the dividend and keeps what's left to run the business. In 2020, it paid out nearly all of its earnings as dividends, raising the dividend despite a steep decline in sales and profits.
Management is guiding for increased sales and profits in 2024 despite continued pressure, and it doesn't look like there's any danger to its dividend. Coca-Cola has about 4.3 billion shares outstanding, and with the dividend at $1.94 per share, that will be nearly $8.4 billion in total dividend payments this year. Shareholders can expect that to continue and to benefit from Coca-Cola's robust dividend for the foreseeable future.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
FAQs
Wall Street analysts expect the company's adjusted earnings per share to be $2.59 this year, so at the current annual dividend payment of $1.94, the stock's payout ratio is 75%.
What is the dividend for Coca-Cola in 2024? ›
The Coca-Cola Company's ( KO ) quarterly dividend per share was $0.49 as of October 1, 2024 . When is The Coca-Cola Company's ex-dividend date? The Coca-Cola Company's latest ex-dividend date was on September 13, 2024 . The KO stock shareholders received the last dividend payment of $0.49 per share on October 1, 2024 .
What is the latest dividend for Coca-Cola? ›
Dividend Summary
| Summary | Previous dividend | Next dividend |
|---|
| Per share | 48.5c | 48.5c |
| Declaration date | 02 May 2024 (Thu) | 29 Jul 2024 (Mon) |
| Ex-div date | 14 Jun 2024 (Fri) | 13 Sep 2024 (Fri) |
| Pay date | 01 Jul 2024 (Mon) | 01 Oct 2024 (Tue) |
2 more rowsAt the current stock price, the dividend yields 2.6%, which is low for Coca-Cola. It's usually around 3%. But even at this yield, it's still double what you'd receive from the S&P 500 index.
What is the special dividend for Coca-Cola? ›
Coca-Cola Consolidated had paid a 25 cent quarterly dividend since 1994 before doubling the payout in 2023. It also paid special dividends of $3.50 per share in 2023 and $16.50 per share in 2024. While publicly traded, Coca-Cola Consolidated has been controlled by the Harrison family for generations.
Is KO a good stock to buy? ›
The financial health and growth prospects of KO, demonstrate its potential to underperform the market. It currently has a Growth Score of D. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.
What stocks pay the highest dividends in 2024? ›
20 high-dividend stocks
| Company | Dividend Yield |
|---|
| Angel Oak Mortgage REIT Inc (AOMR) | 11.44% |
| REV Group Inc (REVG) | 10.96% |
| Buckle, Inc. (BKE) | 10.89% |
| Franklin BSP Realty Trust Inc. (FBRT) | 10.66% |
18 more rowsSep 3, 2024
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The dividend yield is calculated by dividing the annual dividends paid per share by the price per share. The formula is: Dividend Yield = (Annual Dividends Per Share / Price Per Share) × 100%.
Has Coca-Cola stock ever split? ›
Our common stock has split 11 times since its listing in 1919. The history of stock splits by record date is as follows: View stock split summary here.
You would have more than doubled your money, with a total investment worth of $2,029.55. That's a 103% return, or a 7.23% annual rate of return.
How safe is Coca-Cola dividend? ›
It's positive to see that Coca-Cola's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Who pays higher dividend co*ke or Pepsi? ›
PepsiCo has been raising its payout at a higher rate than Coca-Cola over the past five years, and with a slightly lower payout ratio, it's possible that its rate hikes may continue to be more generous.
What will Coca-Cola stock price be in 2024? ›
Coca-Cola stock price forecast for September 2024. The forecast for beginning 72.47 dollars. Maximum price 77.51, minimum 64.27. Averaged Coca-Cola stock price for the month 71.26.
How to earn $1000 per month from Coca-Cola Nyse Ko stock? ›
If your target is to make $1,000 per month — $12,000 annually — from Coca-Cola Co.'s dividends, you must invest about $382,166. At $59.93 a share, this translates to holding about 6,377 shares. However, if you reduce your target to $200 per month, the investment value reduces to $76,433 or 1,276 shares.
How often does Coca-Cola stock split? ›
Our common stock has split 11 times since its listing in 1919. The history of stock splits by record date is as follows: View stock split summary here.
