Coca-Cola (KO) DIvidends Date & History

Key Takeaways

• The Coca-Cola Company pays a quarterly dividend of $0.53 per share, or $2.12 annually, for a dividend yield of roughly 2.3%.
• The company is a Dividend King, having raised its payout for 64 consecutive years, one of the longest streaks in the market.
• The most recent increase was a 4% hike announced in February 2026, lifting the quarterly rate from $0.51 to $0.53.
• The dividend payout ratio sits in the low-to-mid 60% range, supported by a strong balance sheet and an improving free cash flow outlook.
• The Coca-Cola Company offers a modest yield but exceptional dividend consistency, appealing primarily to long-term dividend growth investors.

Dividend Overview

The Coca-Cola Company (NYSE: KO) is one of the most recognizable dividend stocks in the world. The beverage giant pays its dividend quarterly, with a current rate of $0.53 per share, equal to $2.12 per share annually. Based on recent share prices, this translates to a dividend yield of approximately 2.3%.

Coca-Cola is best described as a dividend growth stock rather than a high-yield stock. Its yield is above the S&P 500 average but below many traditional income plays. What sets the company apart is not the size of the yield but the reliability and longevity of its payouts. The next ex-dividend date is December 1, 2026, with the following payment scheduled for December 15, 2026, to shareholders of record as of that date.

Dividend History and Growth

Coca-Cola's dividend history is among the most impressive in corporate America. The company has increased its annual dividend for 64 consecutive years, qualifying it as a Dividend King — a designation reserved for companies that have raised their payouts for at least 50 straight years. Fewer than 60 companies currently hold this distinction.

In February 2026, the board approved a 4% increase, lifting the quarterly dividend from $0.51 to $0.53 per share. While today's annual increases are modest — typically in the low single digits — the consistency of the growth is the defining feature. Over the past five years, the dividend has grown at an annualized rate of roughly 4% to 5%, a deliberate pace designed to be sustainable across economic cycles. Coca-Cola has maintained and grown its payout through multiple recessions, underscoring the durability of its cash-generating business.

Dividend Sustainability and Payout Ratio

Coca-Cola's dividend appears well-supported. The company's payout ratio — the share of earnings paid out as dividends — stands at roughly 63% to 65%, a level that leaves room for reinvestment while comfortably funding shareholder returns.

The company's free cash flow (FCF), or the cash left after capital expenditures, is central to its dividend coverage. In 2025, FCF came in below the roughly $8.8 billion paid in dividends, creating a temporary gap. However, management has guided to approximately $12.4 billion in FCF for 2026, which would restore full coverage. Coca-Cola's balance sheet provides additional cushion: net debt leverage sits near 1.4 times EBITDA (earnings before interest, taxes, depreciation, and amortization), below the company's 2.0–2.5 times target, and it carries an A+/A1 credit rating. These factors suggest the dividend is sustainable for the foreseeable future.

Dividend Compared to Industry Peers

Within the beverage sector, Coca-Cola's dividend profile is strong on consistency but moderate on yield. Compared with its largest rival, PepsiCo (NASDAQ: PEP), Coca-Cola's yield of about 2.3% is notably lower than PepsiCo's roughly 4.5%. PepsiCo also holds a 54-year dividend growth streak, though its higher payout ratio — near 80% of earnings — leaves a thinner margin of safety.

Keurig Dr Pepper (NASDAQ: KDP) yields roughly 2.9% to 3.0%, slightly above Coca-Cola, but has effectively frozen its dividend since 2024 while managing elevated debt. By comparison, Coca-Cola offers the longest and most dependable growth streak of the three, even though its starting yield is the lowest. For investors prioritizing reliability over income, Coca-Cola's profile stands out.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Investors researching income-generating names like Coca-Cola can use the AI Screener to compare dividend yields, payout ratios, and growth streaks across entire sectors in seconds.

Is This Stock Attractive for Dividend Investors?

Coca-Cola is best suited to dividend growth investors and long-term, conservative investors who prioritize reliability and compounding over immediate income. Its 64-year streak of dividend increases makes it a cornerstone holding for investors seeking steadily rising income that can outpace inflation over time.

For pure income investors who need a high current yield, Coca-Cola's roughly 2.3% yield may be less compelling than higher-yielding peers such as PepsiCo. The stock's recent price appreciation has also compressed its yield. However, the payout's safety, the company's durable cash flow, and its fortress-like balance sheet make it a relatively low-risk income source. Investors should weigh the modest yield and slow single-digit growth against the exceptional track record of consistency. Coca-Cola is generally viewed as a "buy and hold" dividend stock rather than a source of rapid income growth.

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