The Coca-Cola Companyâs (KO) dividend yield is 2.89%, which means that for every $100 invested in the companys stock, investors would receive $2.89 in dividends per year.
The Coca-Cola Companyâs payout ratio is 65.04% which means that 65.04% of the companys earnings are paid out as dividends. A low payout ratio may indicate that the company has a strong financial position and can invest in growth opportunities, while a high payout ratio may indicate that the company is returning most of its earnings to shareholders. KOâs annual dividend is $2.04 per share. This is the total amount of dividends paid out to shareholders in a year.
The Coca-Cola Companyâs (KO) ex-dividend date is December 1, 2025, which means that buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment.
The Coca-Cola Company (KO) pays dividends on a quarterly basis. The next dividend payment is planned on December 15, 2025. The Coca-Cola Company (KO) has increased its dividends for 53 consecutive years. This is a positive sign of the companys financial stability and its ability to pay consistent dividends in the future.
The Quick Answer: Yes, Coca-Cola Pays Generous Dividends!
Hey there, fellow dividend hunters! If you’ve been wondering whether Coca-Cola (KO) pays dividends, the short answer is a resounding YES. Not only does Coca-Cola pay dividends, but they’ve been consistently increasing their dividend payouts for an impressive 53 consecutive years! That’s over five decades of reliable income for shareholders.
As a dividend investor myself, I’ve always had my eye on companies that share their profits reliably, and Coca-Cola definitely fits the bill. Let’s dive into everything you need to know about Coca-Cola’s dividend program and why it might be a refreshing addition to your investment portfolio
Coca-Cola’s Current Dividend Stats (Updated November 2025)
Before we go deep into the details, here’s a quick snapshot of Coca-Cola’s current dividend situation:
- Current Dividend Yield: 2.89%
- Annual Dividend: $2.04 per share
- Dividend Payment Schedule: Quarterly
- Next Ex-Dividend Date: December 1, 2025
- Next Dividend Payment Date: December 15, 2025
- Quarterly Dividend Amount: $0.51 per share
- Payout Ratio: 65.04%
- Dividend Growth Rate (1 year): 5.22%
- Consecutive Years of Dividend Growth: 53 years
These figures make Coca-Cola one of the most reliable dividend stocks in the market. When I look at these numbers I see a company that’s committed to returning value to its shareholders.
Why Coca-Cola’s Dividend History Matters
Coca-Cola isn’t just any dividend-paying stock – it’s a dividend aristocrat! This means they’ve increased their dividend payout annually for at least 25 consecutive years But Coca-Cola has gone way beyond that minimum threshold with their 53-year streak of dividend increases
This consistency isn’t just impressive – it tells us something important about the company:
- Financial Stability: Only companies with rock-solid finances can maintain such a long record of dividend increases
- Shareholder-Friendly Management: The company prioritizes returning value to shareholders
- Business Resilience: They’ve maintained dividend growth through multiple economic downturns
- Predictable Income: Investors can rely on not just receiving dividends, but seeing them grow year after year
I’ve watched many companies struggle to maintain their dividends during tough economic times, but Coca-Cola keeps that dividend flowing like their signature beverage!
Coca-Cola’s Dividend Growth Trends
Looking at how Coca-Cola’s dividends have grown over time gives us valuable insight into what we might expect in the future:
| Time Period | Annualized Dividend Growth |
|---|---|
| 1 Year | 5.22% |
| 3 Years | 5.01% |
| 5 Years | 4.33% |
| 10 Years | 4.52% |
What I find particularly intresting about these numbers is the consistency. While many companies show erratic dividend growth patterns, Coca-Cola maintains a steady 4-5% increase year after year. This means your dividend income from KO shares will roughly double every 15 years or so, not counting any additional shares you might purchase.
When Does Coca-Cola Pay Dividends?
Coca-Cola distributes its dividends on a quarterly basis, which means shareholders receive payments four times per year. The company typically follows this general schedule:
- First Quarter: Paid in April (ex-dividend in March)
- Second Quarter: Paid in July (ex-dividend in June)
- Third Quarter: Paid in October (ex-dividend in September)
- Fourth Quarter: Paid in December (ex-dividend in December)
The next upcoming dividend payment will be on December 15, 2025, with an ex-dividend date of December 1, 2025. Remember, you must own the stock before the ex-dividend date to receive that quarter’s payment!
Is Coca-Cola’s Dividend Safe?
One of the biggest questions for dividend investors is always about sustainability. Can the company keep paying (and hopefully increasing) its dividend in the future?
For Coca-Cola, several factors point to good dividend safety:
Payout Ratio Analysis
Coca-Cola’s current payout ratio stands at 65.04%. This means the company pays out about 65% of its earnings as dividends and retains 35% to reinvest in the business.
While this payout ratio is slightly higher than the ideal range (typically under 60%), it’s still within a reasonable zone for a mature, stable company like Coca-Cola. The company’s steady cash flow from its global beverage empire provides strong support for this level of dividend distribution.
Business Model Stability
Coca-Cola’s business model is about as stable as they come. People worldwide consume their products daily, regardless of economic conditions. This creates predictable revenue streams that support dividend payments even during challenging times.
The company’s massive global distribution network and portfolio of over 200 brands provide diversification that further strengthens dividend safety.
Long Track Record
A 53-year history of consecutive dividend increases doesn’t happen by accident. This track record demonstrates management’s commitment to maintaining and growing the dividend through various economic cycles, including recessions and periods of high inflation.
How Does Coca-Cola Compare to Other Dividend Stocks?
When we look at Coca-Cola’s dividend yield compared to others, we get some interesting insights:
- Coca-Cola’s 2.89% dividend yield ranks higher than 46% of companies in its sector
- The yield is better than 54% of companies in the United States
- Globally, Coca-Cola’s yield exceeds 58% of dividend-paying companies
I’ve always found that comparing dividend yields helps put things in perspective. While Coca-Cola’s 2.89% might not be the highest yield available, it’s certainly competitive, especially when you consider the company’s unmatched dividend growth history.
Some similar beverage companies to compare include:
- PepsiCo (PEP)
- Keurig Dr Pepper (KDP)
- The Kraft Heinz Company (KHC)
- Primo Brands Corporation (PRMB)
The Pros and Cons of Investing in Coca-Cola for Dividends
Like any investment, Coca-Cola has its advantages and disadvantages as a dividend stock:
Pros:
- Remarkable Dividend History: 53 consecutive years of dividend growth
- Brand Power: One of the most recognized brands globally
- Stable Business Model: Consumer staple with consistent demand
- Global Reach: Operations in over 200 countries provides diversification
- Dividend Growth: Consistent annual increases above inflation rate
Cons:
- Moderate Growth Prospects: As a mature company, explosive growth is unlikely
- Health Trends: Shifting consumer preferences toward healthier beverages
- Payout Ratio: At 65.04%, it’s slightly higher than ideal
- Valuation: Often trades at a premium price (forward P/E of 22.1x)
- Competition: Intense competition in the beverage industry
How to Start Earning Coca-Cola Dividends
If you’re convinced that Coca-Cola would make a good addition to your dividend portfolio, getting started is pretty straightforward:
- Open a Brokerage Account: If you don’t already have one, choose a reputable broker
- Purchase KO Stock: Buy shares before the ex-dividend date to qualify for the next dividend
- Choose a Dividend Strategy:
- Cash Dividends: Receive quarterly payments in cash
- Dividend Reinvestment (DRIP): Automatically use dividends to purchase more shares
- Monitor Performance: Keep track of dividend increases and company performance
I personally am a fan of dividend reinvestment for long-term wealth building. When you reinvest Coca-Cola dividends, you’re essentially creating a compounding machine that grows faster over time.
Frequently Asked Questions About Coca-Cola Dividends
How long has Coca-Cola been paying dividends?
Coca-Cola has paid dividends since 1920 and has increased its dividend annually for the past 53 consecutive years, making it one of the longest-running dividend success stories.
What is Coca-Cola’s dividend payout schedule?
Coca-Cola pays dividends on a quarterly basis (four times per year). The next dividend payment is scheduled for December 15, 2025.
Does Coca-Cola have enough earnings to cover its dividends?
Yes, though the payout ratio of 65.04% is moderately high. This means Coca-Cola pays out about 65% of its earnings as dividends, leaving 35% for reinvestment. While this is slightly above the ideal range, it’s still considered sustainable given Coca-Cola’s stable business model.
What is Coca-Cola’s dividend growth rate?
Coca-Cola has grown its dividend at an annualized rate of 5.22% over the past year, 5.01% over three years, 4.33% over five years, and 4.52% over ten years. This consistent growth outpaces inflation, increasing shareholders’ purchasing power over time.
How does Coca-Cola’s dividend yield compare to other stocks?
Coca-Cola’s dividend yield of 2.89% ranks in the 54th percentile among U.S. companies, meaning it offers a higher yield than 54% of dividend-paying stocks in the country. Globally, it’s in the 58th percentile.
Final Thoughts: Is Coca-Cola a Good Dividend Stock?
After analyzing all aspects of Coca-Cola’s dividend program, I believe it represents a strong choice for dividend investors, particularly those focused on long-term income growth and reliability.
The combination of a respectable current yield (2.89%), consistent growth rate (around 5% annually), and unmatched dividend increase streak (53 years) creates a compelling case for including KO in a dividend portfolio.
While the payout ratio is something to keep an eye on, the company’s stable business model and global presence provide strong support for continued dividend payments and increases in the foreseeable future.
For investors seeking a “set it and forget it” dividend stock that they can rely on for decades to come, Coca-Cola certainly deserves consideration. Its dividend program has proven itself through multiple economic cycles and continues to deliver refreshing returns to patient shareholders.
What’s your take on Coca-Cola as a dividend investment? Have you had good experiences with KO in your portfolio? I’d love to hear your thoughts and experiences!
Dividend Growth Table 1Y 3Y 5Y 10Y Annualized Growth %
KO dividend yield graph is a visual representation of The Coca-Cola Companyâs dividend yield over the last 12 months. This is useful for investors to understand KOâs historical dividend yield and to identify any trends or patterns in the companys dividend payments over time.
Shareholder yield is a metric that measures the total return to shareholders through dividends, buybacks, and debt paydown. It is a ratio that compares the cash returned to shareholders over a period of time to the market capitalization of the company.
The Coca-Cola Company (KO) shareholder yield graph below includes indicators for dividends, buybacks, and debt paydown, which allows investors to see how each component contributes to the overall shareholder yield.
Its important to note that shareholder yield is just one metric among many that investors may use to evaluate a companys financial health and its potential for future growth. It should be considered in conjunction with other financial metrics such as earnings, revenue, and debt levels to get a comprehensive understanding of a companys financial position.
Dividend safety refers to the ability of a company to continue paying its dividends to shareholders without interruption or reduction. A company with a high level of dividend safety is generally considered to have a strong financial position, with a consistent history of paying dividends and a low risk of default.
Some specific indicators often used to assess The Coca-Cola Company (KO) dividend safety include
- Dividend payment history: KO has a long history of paying dividends and has consistently increased its dividend payout for 53 consecutive years.
- Dividend payout ratio: A low payout ratio, typically less than 60%, indicates that a company has enough earnings to pay dividends and retain earnings to reinvest in the business. The Coca-Cola Companyâs payout ratio is about 65.04%
It is worth noting that Dividend safety can change over time, and a company that was considered to have a high level of dividend safety in the past may no longer be considered safe today. Therefore, it is important to regularly monitor a companys financial performance and dividend payment history.
Comparing The Coca-Cola Company to Other Stock
The percentile ranks table is a way to compare The Coca-Cola Company (KO) dividend yield relative to its sector, country, and the world.
- Dividend yield: KOâs latest value of 2.89% is the percentage of the current stock price that is paid out as dividends to shareholders. The relative to the sector, country, and world values (0.46, 0.54, and 0.58 respectively) indicate The Coca-Cola Companyâs dividend yield compared to others in its sector, country, and world. For example, a value of 0.54 relative to country means that The Coca-Cola Companyâs dividend yield is higher than 54% of companies in its country.
This table allows investors to quickly compare a companys dividend metrics to its peers in the sector, country, and the world, and evaluate its relative stability and growth potential.