Coca-Cola (KO) DIvidends Date & History

Key Takeaways

• Coca-Cola offers a forward dividend yield of approximately 2.7%, paid quarterly at $0.53 per share for an annual total of $2.12.
• The company has raised its dividend for 64 consecutive years, earning Dividend King status among elite payers.
• Payout ratio stands at around 67-70% of earnings, indicating solid coverage.
• Recent ex-dividend date was March 13, 2026, with payment on April 1, 2026.
• Free cash flow coverage has been tight recently but supported by strong brand and cash generation history.
• Appeals to conservative income and dividend growth investors seeking stability.

Dividend Overview

The Coca-Cola Company (KO), a global beverage leader, maintains a robust dividend policy characterized by quarterly payments and consistent annual increases. The current quarterly dividend is $0.53 per share, equating to an annual payout of $2.12 and a forward yield of about 2.7% based on recent stock prices. This positions KO as a dividend growth stock rather than a high-yield play, prioritizing reliability over top yields. Payments are typically made on the first of April, July, October, and mid-December, with the most recent ex-dividend date on March 13, 2026, and payment on April 1, 2026. Coca-Cola's commitment to shareholders is evident in its long-term strategy, balancing reinvestment in growth with dependable income distribution.

Dividend History and Growth

Coca-Cola has an exemplary dividend history, with 64 consecutive years of annual increases as of the February 2026 announcement, raising the quarterly payout from $0.51 to $0.53—a 4% hike. This streak classifies KO as a Dividend King, one of the longest in the S&P 500. Over the past five years, dividends have grown at an average annual rate of about 5%, reflecting pricing power and global demand resilience. No cuts have occurred in over six decades, underscoring a conservative yet progressive strategy focused on sustainable expansion amid economic cycles.

Dividend Sustainability and Payout Ratio

Coca-Cola's dividend sustainability is underpinned by a trailing payout ratio of approximately 67%, meaning it distributes about two-thirds of earnings as dividends, leaving room for growth and reinvestment. Earnings per share (EPS) trailing twelve months (TTM) coverage supports this, with EPS at $3.04. Free cash flow (FCF, cash generated after capital expenditures) coverage was strained in FY2025 at over 100% ($8.8B dividends vs. $5.3B FCF), but historical trends and operating cash flow strength ($10.5B+) indicate resilience. Moderate debt levels and a dominant market position further bolster confidence in ongoing payments.

Dividend Compared to Industry Peers

In the non-alcoholic beverage sector, Coca-Cola's 2.7% yield is competitive but trails rival PepsiCo (PEP) at around 3.5%, which has a 54-year growth streak. Monster Beverage (MNST) pays no dividend, prioritizing growth, while Dr Pepper Snapple (DPS) offers similar modest yields. KO's profile stands out for its unmatched streak and stability, making it a peer benchmark for consistency rather than maximum yield.

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Is This Stock Attractive for Dividend Investors?

Coca-Cola appeals to conservative dividend investors seeking reliable income with moderate growth. Its 64-year streak and 2.7% yield provide steady quarterly payouts, ideal for retirees or those prioritizing capital preservation amid volatility. Dividend growth enthusiasts value the consistent 4-5% annual raises, compounding returns over decades. Long-term holders benefit from the brand's defensive qualities in consumer staples, offering resilience in downturns. However, the yield lags ultra-high payers, and recent FCF pressures may concern yield-focused investors. Balanced portfolios may include KO for diversification, but growth-oriented dividend seekers might prefer higher-yield peers like PEP. Overall, it suits patient, income-stable strategies without aggressive growth expectations.

Disclaimer

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