Coca-Cola Boosts Dividend for 63rd Year, Delighting Investors
Coca-Cola has boosted its dividend by 5.2%, marking an impressive 63rd consecutive year of increases, cementing its status as a Dividend King. This move comes as the company generates substantial cash and maintains a strong financial position.
In 2024, Coca-Cola generated $10.8 billion in adjusted free cash flow, leading to a 73% dividend payout ratio. The company pays out over $8 billion annually in dividends and has distributed nearly $100 billion to shareholders since 2010. As of the second quarter, Coca-Cola ended with $14.3 billion in cash and a low 2.0 times leverage ratio, indicating robust financial health.
Coca-Cola aims to deliver 4%-6% annual organic revenue growth and 7% to 9% annual earnings-per-share growth. Berkshire Hathaway, led by Warren Buffett, owns 400 million shares of Coca-Cola, worth $26.7 billion, and collects over $800 million in dividend income annually from the company. Coca-Cola's dividend currently yields over 3%, more than double the S&P 500's dividend yield.
The author, a fan of passive income through dividend stocks, has recently added Coca-Cola to their portfolio, drawn by its dividend history and Buffett's investment. They plan to continue building their position to collect more of the company's steadily rising dividend income.
