Dividend history information is presently unavailable for this company. This might mean that a dividend has never been paid by the company or that one is on hold.
One page that offers a comprehensive overview of all the combined dividend payment data is the Dividend History page. Check out our Dividend Calendar: Quotemedia, our partner, offers the forthcoming ex-dividend dates for the upcoming month (Other OTC Please be aware that the company’s preferred securities may also be included in the dividend history. Price/Earnings Ratio is a widely used stock evaluation measure. The Price/Earnings Ratio of a security is calculated by dividing its Actual EPS (Earnings Per Share) by its Last Sale Price.
Nasdaq Dividend History provides straightforward stock’s historical dividends data. When evaluating individual stocks, the dividend payout record can be utilized to assess the long-term performance of the company.
In the world of dividend investing, Coca-Cola (KO) is a name that instantly comes to mind. With a long history of dividend increases, a global brand, and a seemingly stable business model, it’s no wonder many investors consider it a reliable source of income. However, recent developments have cast a shadow on Coca-Cola’s dividend allure, leading some to question whether it’s still a good dividend stock or has become a “dividend trap.”
This article delves into the intricacies of Coca-Cola’s dividend, analyzing its strengths and weaknesses to help you make an informed decision about whether it deserves a place in your portfolio.
Coca-Cola’s Dividend: A Legacy of Growth
Coca-Cola’s dividend history is truly impressive. The company has increased its dividend every year since 1963, making it a member of the prestigious “Dividend Kings” club. This remarkable streak speaks volumes about Coca-Cola’s commitment to rewarding its shareholders and its confidence in its future prospects.
Currently, Coca-Cola’s dividend yield stands at a respectable 3%, which is double the average yield of the S&P 500. This makes it an attractive option for income-oriented investors seeking a steady stream of passive income.
The Dividend Trap: Rising Concerns
Despite its impressive dividend history there are growing concerns about the sustainability of Coca-Cola’s dividend. These concerns stem from a combination of factors, including:
- Stagnant Free Cash Flow Growth: Coca-Cola’s free cash flow growth has been sluggish in recent years, failing to keep pace with the rising cost of its dividend. This means that the company is increasingly relying on debt to finance its payout, which raises concerns about its long-term financial health.
- High Payout Ratio: The percentage of Coca-Cola’s free cash flow that goes towards its dividend, known as the payout ratio, has been steadily rising. In 2023, the payout ratio reached 90%, meaning that the company is paying out nearly all of its free cash flow to shareholders. This leaves little room for reinvesting in the business or weathering economic downturns.
- Underperformance: Coca-Cola’s stock price has underperformed the market in recent years, raising questions about the company’s growth prospects. This lackluster performance could further erode investor confidence and make the dividend less attractive.
Should You Invest in Coca-Cola for its Dividend?
Given the concerns surrounding Coca-Cola’s dividend, it’s crucial to carefully consider whether it’s still a good investment for income-oriented investors. Here are some factors to weigh:
- Total Return: While Coca-Cola’s dividend yield is attractive, its total return, which includes both dividend income and capital appreciation, has lagged behind the market. This means that investors might be better off investing in other stocks that offer both a decent dividend and the potential for capital growth.
- Alternatives: Currently, investors can find higher returns on CDs with less risk, making Coca-Cola’s dividend less appealing.
- Long-Term Investors: For long-term investors who have held Coca-Cola for many years, the high dividend yield and capital gains may outweigh the recent concerns. However, new investors should carefully consider the risks involved before investing.
While Coca-Cola’s dividend history is impressive, the rising cost of the payout and the company’s underperformance raise concerns about its sustainability. Investors seeking income should carefully consider these factors before investing in Coca-Cola for its dividend.
It’s important to remember that investing in any stock, including Coca-Cola, carries inherent risks. Before making any investment decisions, it’s crucial to conduct thorough research, understand your risk tolerance, and consult with a financial advisor if needed.
Additional Resources:
- Coca-Cola Co has increased its dividend each year since 1963. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 61 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
- Coca-Cola (KO) Stock Dividend Date & History – TipRanks.com
Keywords: Coca-Cola, dividend, dividend stock, dividend trap, income investing, free cash flow, payout ratio, total return, investment, risk.
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Dividend history information is presently unavailable for this company. This might mean that a dividend has never been paid by the company or that one is on hold.
One page that offers a comprehensive overview of all the combined dividend payment data is the Dividend History page. Check out our Dividend Calendar: Quotemedia, our partner, offers the forthcoming ex-dividend dates for the upcoming month (Other OTC Please be aware that the company’s preferred securities may also be included in the dividend history. Price/Earnings Ratio is a widely used stock evaluation measure. The Price/Earnings Ratio of a security is calculated by dividing its Actual EPS (Earnings Per Share) by its Last Sale Price.
Nasdaq Dividend History provides straightforward stock’s historical dividends data. When evaluating individual stocks, the dividend payout record can be utilized to assess the long-term performance of the company.
Is Coca Cola Stock a Buy Now!? | Coca Cola (KO) Stock Analysis! |
FAQ
Is Coca-Cola a good dividend stock for long-term?
How much can you make on Coca-Cola dividends?
Are Coca-Cola shares a good buy?
Should you invest $1,000 in Coca-Cola right now?
Is Coca-Cola a good dividend stock?
Coca-Cola offers a high dividend yield coupled with unexpected risks. Coca-Cola ( KO 0.06%) has long served investors well on the dividend front. The consumer staples stock has hiked its payout for 58 consecutive years and has paid 395 dividends since 1920. One of the most famous Coca-Cola investors is Warren Buffett.
Is Coca-Cola a dividend King?
Moreover, with more than 50 straight years of increases behind it, Coca-Cola is a Dividend King — a rare designation. That track record can give added confidence to income investors, because maintaining such a streak requires long-term balance sheet stability. For this reason, some count Coca-Cola among the safest dividend stocks in the world.
Is Coca-Cola a dividend aristocrat?
Coca-Cola is a true Dividend Aristocrat. A Dividend Aristocrat is a company that has paid and raised its dividend for at least 25 consecutive years. Coca-Cola has actually raised its payout for the past 59 years in a row. Plus, with dividend stocks currently out of fashion as investors’ focus remains on growth, KO stock is reasonably valued.
Is the Coca-Cola Company (Ko) a good stock to buy?
The Coca-Cola Company ( NYSE: KO) is a long-time dividend aristocrat and popular income stock with Seeking Alpha readers, but under the hood, there are some issues that investors should be aware of.