Coca-Cola (KO): A Reliable Dividend King for Long-Term Investors
Key Takeaways
- Coca-Cola (KO) offers a current dividend yield of approximately 2.8%, providing reliable income for investors.
- The company has raised its dividend for 64 consecutive years, earning Dividend King status.
- Quarterly dividend stands at $0.53 per share, with the most recent ex-dividend date on March 13, 2026.
- Payout ratio of around 68% indicates solid earnings coverage for the dividend.
- Strong brand portfolio and global reach support long-term dividend sustainability.
- Free cash flow (FCF) projected to improve to $12.2 billion in 2026, bolstering payout capacity.
Understanding KO's Dividend Profile
As a global leader in beverages, The Coca-Cola Company (KO) has built a robust dividend policy around quarterly payments and steady growth. The current quarterly dividend sits at $0.53 per share, which annualizes to $2.12 and delivers a yield of about 2.8% at recent share prices near $76. From my view, this makes KO a classic dividend growth stock—reliable income with some appreciation potential, rather than a high-yield option. Payments come every three months or so, typically in April, July, October, and December. The asset-light model, centered on concentrate sales and franchised bottling, produces the predictable cash flows that back this approach. With a track record of annual increases, KO stands out for its stability in the consumer staples space.
The Impressive Dividend History
One thing that stands out about Coca-Cola (KO) is its unmatched streak of 64 consecutive years of dividend increases, cementing its place as a Dividend King among the rare companies with 50-plus years of raises. Recent adjustments, from $0.485 per share in early 2024 to $0.53 in 2026, reflect annual hikes of about 4-5%. Over the last five years, this has compounded at roughly 4.5%, keeping pace ahead of inflation through careful capital allocation. Investor relations data traces the path clearly: $1.94 annually in 2024, $2.04 in 2025, and $2.12 looking forward. Even through economic challenges over six decades, there have been no cuts— a commitment to shareholders that pairs reinvestment in brands like Coca-Cola Zero Sugar and Fairlife.
Assessing Dividend Sustainability
In my analysis, Coca-Cola's dividend looks sustainable thanks to a payout ratio of about 68%, distributing roughly two-thirds of earnings and leaving ample room for growth and reinvestment. Earnings per share coverage is solid, with recent EPS at $3.04. Free cash flow in 2025 came in at $5.3 billion after one-time items like the Fairlife payment, more than covering the $8.8 billion in dividends via operations and cash reserves; 2026 guidance points to $12.2 billion in FCF for even stronger support. Debt-to-equity is around 1.4 (140%), which remains manageable with investment-grade ratings and interest coverage over 20x. The balance sheet's $15.8 billion in cash equivalents adds further reassurance, even with occasional FCF strains from acquisitions.
How KO Stacks Up Against Peers
I also checked this using Tickeron’s AI Screener to see how KO compares in the beverage industry. Its 2.8% yield holds up competitively, lagging some rivals but beating others. PepsiCo (PEP), with its snacks diversification, yields around 3.6% alongside 54 years of increases. Keurig Dr Pepper (KDP) matches that 3.6% yield with expanding coffee presence. Monster Beverage (MNST) skips dividends to fuel growth. KO's yield aligns with the non-alcoholic beverage sector average, but its longer growth history and global brand strength set it apart for investors prioritizing quality over maximum yield.
Spotting Opportunities with Tickeron's AI Screener
In my own research, I rely on Tickeron’s AI Screener, an AI-powered tool for discovering stocks and ETFs through filters on technical patterns, fundamentals, trends, volatility, and signals. It lets me scan thousands of names quickly using criteria like industry, market cap, indicators, price patterns, and performance—ideal for pinpointing dividend stocks, income plays, or breakouts. This efficiency beats manual screening, and I've found it particularly useful for uncovering beverage sector gems or broader market ideas.
Why Dividend Investors Might Consider KO
From what I see, Coca-Cola (KO) appeals to conservative, long-term dividend growth investors who value reliability above high yields. The 64-year streak draws those aiming for steady compounding, where 4-5% annual raises have matched broader market returns over time. Income-focused portfolios benefit from the 2.8% yield and quarterly cadence, supported by enduring demand for its brands through economic cycles. The asset-light setup and worldwide presence offer defensive traits for volatile periods. That said, I'm watching evolving trends toward healthier drinks, as growth seekers might prefer peers with lower payout ratios or higher yields. Still, the balance sheet and FCF trajectory back continued raises, making KO a solid core holding for patient investors who prize consistency.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
KO in upward trend: price may jump up because it broke its lower Bollinger Band on September 30, 2026
KO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 18 of 40 cases where KO's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 45%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +0.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in 148 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 44%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 28, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KO as a result. In 31 of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 40%.
The Moving Average Convergence Divergence Histogram (MACD) for KO turned negative on August 28, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 17 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 35%.
KO moved below its 50-day moving average on September 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for KO crossed bearishly below the 50-day moving average on October 01, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 40%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 29%.
The Aroon Indicator for KO entered a downward trend on October 01, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 5 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron SMR rating for this company is 24 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. KO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.373) is normal, around the industry mean (6.793). P/E Ratio (26.180) is within average values for comparable stocks, (43.051). Projected Growth (PEG Ratio) (3.960) is also within normal values, averaging (3.732). Dividend Yield (0.024) settles around the average of (0.014) among similar stocks. KO's P/S Ratio (7.559) is slightly higher than the industry average of (2.785).
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General Information
a manufacturer of non-alcoholic beverages
Industry BeveragesNonAlcoholic
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