- KO pays a quarterly dividend of $0.53 per share, equal to $2.12 annually and a 2.33% forward yield at a $91.10 share price.
- Coca-Cola has delivered 64 consecutive annual dividend increases, supported by 5% unit-case volume growth and 6% adjusted revenue growth.
- KO dividends remain well covered, but the stock trades near its 52-week high and below its five-year average yield.
Current payout and calendar
KO pays a quarterly dividend of $0.53 per share, equal to $2.12 annually and a 2.33% forward yield at a $91.10 share price. The next expected ex-dividend date is September 15, 2026, with payment scheduled for October 1, 2026.
For perspective, a $10,000 KO position at today’s yield would generate about $233 in annual dividends before taxes, assuming no change in the payout. Coca-Cola’s dividend growth has remained steady rather than spectacular, with one-, three-, five-, and 10-year growth rates of roughly 4.3% to 4.9% annually.
Dividend durability remains the main attraction
Coca-Cola’s long record, global brands, and defensive business model remain central to its income case. The company has delivered 64 consecutive annual dividend increases, placing KO among the market’s most established dividend-growth franchises.
Recent operating performance also supports that reputation. Unit-case volume rose 5% while adjusted revenue increased 6%, showing consumers continued buying despite price increases.
KO’s net profit margin is 28.6%, return on equity is 42.1%, and return on total capital is 19.4%. These figures reflect the pricing power of its global brand portfolio.
Management has also raised its outlook, targeting 9% to 10% comparable EPS growth for the full year. Sustained earnings growth gives the company room to continue raising KO dividends.
Coverage and debt require monitoring
The payout appears sustainable, but it is not exceptionally conservative. KO’s dividend consumed about 77% of trailing free cash flow, a manageable level for a stable, cash-rich business that leaves less room for error if earnings, currency trends, or consumer demand weaken.
Net debt-to-EBITDA has been reported near 1.4 times, while KO’s debt-to-capital ratio is 51%. Neither figure signals immediate financial stress, but higher interest costs and a potential tax liability related to foreign operations could limit future dividend growth.
Valuation is the income investor’s challenge
At $91.10, KO trades near its 52-week high of $91.87 and at a trailing P/E ratio of 27.4. Its 2.33% yield is below its five-year average yield of 2.83%, suggesting investors are paying a premium for safety and consistency.
A yield near that five-year average would imply a share price closer to $75, assuming the $2.12 annual dividend remains unchanged. Coca-Cola remains a sensible core holding for dependable income and moderate dividend growth, though new buyers may prefer to build positions gradually or wait for a higher yield.
