Coca-Cola Company (KO) Dividend Date & Dividend History: Stock Analysis Guide

Coca-Cola - KO - Market Position

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Stock Ticker Home Page Asset Class Sector Industry Investment Strategy Dividend Frequency Geographic Focus
KO Coca-Cola Co. Stock / Equity Consumer Staples Beverages (Production/Distribution) Growth Quarterly Global

Coca-Cola (KO) stands as a titan among dividend-paying stocks, boasting a remarkable 67-year streak of uninterrupted dividend increases. Its iconic brands, like Coca-Cola and Tide, are embedded in households globally, generating consistent cash flow and fueling its reliable dividend payouts. However, investing in KO comes with both advantages and challenges that should be carefully considered.

Coca-Cola - KO - Current Market Data

Coca-Cola - KO - Business Overview

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Detail

Overview:

The Coca-Cola Company (KO) stands as a global beverage giant, quenching the thirst of billions with its iconic Coca-Cola brand and a diverse portfolio like Sprite, Fanta, Minute Maid, and more. Their target market spans the globe, holding a sizable market share in the non-alcoholic beverage industry. Their mission: "To refresh the world in mind, body, and spirit."

Business Model:

KO generates revenue primarily through the sale of beverage concentrates, syrups, and finished beverages to authorized bottling partners worldwide. These partners handle bottling, distribution, and local marketing, contributing to KO's profit margins. Key revenue streams include sparkling beverages, still beverages, and juice & dairy products.

Industry Competition:

KO faces competition from PepsiCo, Nestlé, and regional players in various markets. Recent industry trends include rising input costs, evolving consumer preferences towards healthier drinks, and growing environmental concerns. Adapting to these trends and diversifying offerings are crucial for maintaining market share.

Competitive Advantages:
  • Iconic Brands: KO boasts household names like Coca-Cola, recognized and loved globally, granting them immense brand loyalty and pricing power.
  • Global Distribution Network: KO's extensive bottling partnership network ensures wide market reach and efficient distribution, giving them a logistical edge.
  • Innovation Engine: KO invests heavily in research & development, constantly refining existing products and launching new offerings to cater to evolving tastes.
  • Financial Strength: KO's robust balance sheet and strong cash flow enable them to navigate economic challenges, invest in growth, and maintain their impressive dividend track record.

Management Team:

James Quincey, Chairman & CEO: Proven leader with extensive experience in the beverage industry and a global focus.

Brian Smith, Chief Financial Officer: Seasoned financial strategist with expertise in optimizing profitability and cash flow.

Beverley Kingsley, Chief Growth Officer: Experienced marketer with a strong track record in brand innovation and expanding market reach.

Financial Performance:

KO exhibits consistent financial performance with steady revenue growth, increasing profitability, and a remarkable 67-year streak of uninterrupted dividend increases. Recent key metrics include:

  • Revenue: $45.97 billion in 2023 (fiscal year ending December 31st).
  • Net Income: $9.80 billion in 2023.
  • Earnings per Share (EPS): $5.12 in 2023.
  • Dividend Yield: 3.24% (annualized).

Investment Thesis:

Investors might consider KO for:

  • Reliable Dividends: KO's commitment to dividend growth, along with its financial strength, offers a dependable income stream for dividend-focused portfolios.
  • Defensive Consumer Staples: KO operates in the essential beverage sector, providing relative stability during economic downturns and protecting dividend payouts.
  • Global Footprint: KO's global presence offers diversification and growth potential in various markets.

However, risks to consider include:

  • Limited Growth Potential: KO's focus on mature markets and established brands might offer lower growth compared to high-growth sectors.
  • Vulnerability to Market Downturns: While defensive, KO remains susceptible to broader market downturns, potentially impacting its share price and dividend growth rate.
  • Shifting Consumer Preferences: Changing trends towards healthier alternatives and environmental concerns could pose challenges for long-term demand growth.

Conclusion:

KO remains a compelling option for income-focused investors seeking stability and a reliable, growing income stream. Its iconic brands, global reach, financial strength, and commitment to dividends offer substantial advantages. However, investors should consider its limited growth potential, vulnerability to market downturns, and shifting consumer preferences before making a decision.

KO Dividend Analysis

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Section Details

KO Dividend Data

 Coca-Cola Co. (KO) has an annual dividend of $1.84 per share. The dividend is paid every three months. The last ex-dividend date was on November 30, 2023.

KO Dividend Yield

 The forward yield of KO is 3.01%. This means that for every $100 invested in the company's stock, investors would receive $3.01 in dividends per year.

KO Dividend History

 		Coca-Cola Company (KO) has a rich dividend history. Here are some recent dividend payments: The most recent quarterly dividend payment of $0.46 per share was made to shareholders on Thursday, December 15, 2023.

KO Dividend Payout & Dividend Payout Ratio

 The annual dividend for KO shares is $1.84. The dividend payout ratio for KO is 74.19% based on the trailing year of earnings. This means that 74.19% of the company's earnings are paid out as dividends.

KO Dividend Stability & Growth

 KO's dividends per share have been stable in the past 10 years. Over the past three years, the company's dividend has grown by an average of 3.91% per year. Coca-Cola has increased its dividend for the past 63 consecutive years.

KO Chart

KO Comparative Analysis

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Coca-Cola (KO) PepsiCo (PEP) Diageo (DEO)

Industry Focus

 Beverages Food, Snack, and Beverage Alcoholic Beverages

Current Yield

 3.01% 3.01% 2.13%

Price-to-Earnings Ratio (P/E)

 24.33 24.85 20.69

Investment Strategy

 Brand loyalty, global distribution, and diversification Brand loyalty, diversified portfolio, and strong distribution network Premium brands, global distribution, and strong marketing

Consumer Stocks

News

Financials

Technical Analysis

Additional Considerations

When considering the attractiveness of Microsoft's (MSFT) dividend, it's important to take into account the company's dividend history and growth. MSFT has a strong history of paying dividends, with consecutive payouts for a number of years. The annual dividend is currently $1.94 per share, with a dividend payout ratio of 78.54%. This indicates that the company is able to cover its dividend payments with its earnings. However, the technology sector in which MSFT operates is highly competitive and subject to rapid changes in consumer preferences and economic conditions.

The next dividend payment is expected to follow the dividend date pattern established in the MSFT dividend history. The last ex-dividend date was on November 30, 2034, and the frequency of the dividend is quarterly. However, the future growth of MSFT's dividend is not guaranteed. Factors such as a recession, changes in the technology landscape, or shifts in cloud computing could impact MSFT's performance and ability to increase or even maintain its current dividend. Therefore, while the MSFT dividend may be an attractive feature for income-focused investors, it's crucial to conduct a thorough analysis and consider the potential risks before adding MSFT to your portfolio or ETFs.