Coca Cola Increases Their Dividend by 2.5%


coca cola

Dividend Increase Announcement

On February 20th, Coca Cola announced a dividend increase of 2.5%. This will increase their dividend per quarter from $0.40 to $0.41. It is payable on April 1st for shareholders of record on March 16th. The new quarterly dividend represents an annualized dividend amount of $1.64 per share as compared to the current annualized dividend amount of $1.60 per share.

Coca Cola’s Dividend Information

Annual Dividend: $1.64
Dividend Yield: 2.76%
Dividend Growth History: 57 years
Payout Ratio: 72.7%

Dividend Increase Affect On More Dividends

I am currently holding 15.307 shares of Coca Cola in the More Dividends portfolio. With this 2.5% increase it will add an additional $0.61 to my projected annual dividend income and this doesn’t even take into account the compounding factor!

Conclusion

Coca Cola has been in my portfolio for years. When I am speaking to non investors about my dividend growth investing strategy I always use Coca Cola as an example. I simply tell them “Can you ever imagine Coca Cola disappearing in your lifetime?”. If their answer is NO, why wouldn’t they want to invest in the company.

I understand that consumer preferences may be changing but the company owns 20 brands that each earn over a billion dollars a year. That represents some great diversification. Not to mention that they have the capital to transition and fill their customers needs, even if their large size makes the transition a bit slower than we would like.

If you have been following my blog then you may have read one of my recent articles titled The Coca Cola Insiders Club. This is truly an innovative interesting idea for the company. I foresee the company expanding on this idea in the future, because at its core the consumer is basically paying to be a part of a focus group for the company.

I would love to add to this position but the share price is currently much larger than my cost basis. Seems to be a recurring theme in my portfolio. If the share price comes back down closer to my cost basis, it will definitely be one that I will strongly consider.

Regardless of how large or small, I love all dividend increases. That is how we end up with More Dividends 😉

Do you currently hold any stock in Coca Cola? What do you think of this dividend increase? Just let me know in the comments.

As always I look forward to reading all of your comments and questions, until then….. happy investing!

-Jason from MoreDividends.com





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