Coca-Cola FEMSA SAB DE CV (KOF) DIvidends Date & History

Key Takeaways

• Coca-Cola FEMSA offers a forward dividend yield of approximately 4%, higher than peers like KO (2.8%) and PEP (3.4%).
• Quarterly dividend payments, with the most recent ex-dividend date on April 20, 2026, and payment of $0.96 per share on May 1, 2026.
• Payout ratio of around 66%, suggesting the dividend is well-covered by earnings.
• Dividend growth of about 10.7% CAGR over the past three years, with recent increases.
• Manageable debt levels with a debt-to-equity ratio of 55.5%, supporting dividend sustainability.
• Positive free cash flow provides additional coverage for ongoing payouts.

Dividend Overview

Coca-Cola FEMSA (KOF), the largest independent Coca-Cola bottler in Latin America, maintains a shareholder-friendly dividend policy with quarterly payments. The forward annual dividend stands at $4.09 per share, delivering a yield of 4.00% based on a recent stock price of around $102. This positions KOF as a high-yield option within the beverage sector, appealing to income-focused investors. The company has demonstrated commitment to returning capital through consistent quarterly distributions, with the latest installment of $0.9636 per share declared for payment on May 1, 2026. Over the past five years, the average dividend yield has been 3.80%, reflecting a stable profile with upward trends in recent payouts.

Dividend History and Growth

Coca-Cola FEMSA has paid dividends consistently, evolving its policy to quarterly installments from an annual base amount approved at the shareholders' meeting. Recent proposals include Ps. 7.74 per KOF UBL unit (equivalent to $0.9675 per share) for fiscal year 2025, paid in four equal parts. The dividend per share has shown growth, with a three-year compound annual growth rate (CAGR) of 10.68% and 16.14% over the past 12 months. While not a Dividend Aristocrat with decades of consecutive increases, KOF has raised payouts in recent years amid improving operations in its core markets, underscoring a strategy balanced between growth investments and shareholder returns.

Dividend Sustainability and Payout Ratio

The dividend appears sustainable, with a payout ratio of approximately 66%, leaving ample room for reinvestment and resilience against economic pressures. Earnings comfortably cover the distribution, and positive levered free cash flow of $1.8 billion (trailing twelve months) further bolsters confidence. Debt levels are moderate, with a total debt-to-equity ratio of 55.5%, indicating prudent leverage that supports ongoing payments without straining the balance sheet. Overall financial stability, driven by strong cash generation in bottling operations, positions the dividend for long-term viability.

Dividend Compared to Industry Peers

Among beverage bottlers and peers, KOF's 4% yield outpaces KO at 2.8%, PEP at around 3.4%, and CCEP at 2.4%. This higher yield reflects KOF's emerging market exposure and capital return focus, contrasting with the more conservative profiles of U.S.-centric giants. Relative to the sector, it offers above-average income potential while maintaining comparable payout discipline.

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Is This Stock Attractive for Dividend Investors?

Coca-Cola FEMSA (KOF) suits income investors seeking higher yields in the consumer staples sector, particularly those comfortable with Latin American market dynamics. Its 4% yield and quarterly payouts provide steady cash flow superior to many global beverage leaders. Dividend growth investors may appreciate the recent 10%+ CAGR trajectory, though the absence of a decades-long streak tempers expectations for aristocrat-like reliability. Conservative investors could value the 66% payout ratio and moderate leverage, offering a buffer amid economic volatility. However, exposure to currency fluctuations and regional risks may deter ultra-conservative portfolios. Overall, it appeals to balanced income seekers prioritizing yield over ultra-stability, within a diversified strategy.

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