That level of consistency is unusual, even among those companies that qualify as Dividend Aristocrats. It owns or licenses more than 500 non-alcoholic beverages, including both sparkling and still beverages. Other key categories including juice, sport, ready-to-drink tea/coffee, energy, and water are all growing. Any suggestions as to the time frame for building a position in the stock given the outlook for the next twelve months? Growing per capita consumption in these enormous markets will allow global per capita consumption of Coca-Cola to rise for a long time to come. As seen below, KO has generally maintained a return on invested capital in the teens or higher for the past decade, which indicates a durable and consistent business with low capital intensity (licensing brand formulas to restaurants and bottlers). However, Dr. Pepper is still a major player when it comes to beverages. (function() { The company has grown its dividend for the last 57 consecutive years and is increasing its dividend by an average of 3.48% each year. KO can prove to be a savior with its history of stable dividends along with capital appreciation in the long run. We investigate each of these areas to determine what Coke’s normalized dividend growth rate should be over the coming decade. Some of Coke’s key brands include diet and regular Coca-Cola, Fanta, Sprite, Minute Maid, Powerade, Dasani, Vitaminwater, and Schweppes. Cash flow drives dividend payments and Duke’s predictable, constant influx of cash makes it a good pick for investors seeking safety. Our Safety Score answers the question, “Is the current dividend payment safe?” We look at factors such as current and historical EPS and FCF payout ratios, debt levels, free cash flow generation, industry cyclicality, ROIC trends, and more. In short, income investors need super safe dividend stocks right now, and we know some good ways to find them. Unlike companies with extremely high yields that later prove to have been too ambitious for their long-term prospects, Coca-Cola has taken a more measured approach toward its dividend, and that has kept payouts from becoming dangerous. That doesn't mean that Coca-Cola's dividend is doomed, but it does suggest that investors should watch closely to make sure that the fundamental business underpinnings that have allowed Coca-Cola to boost its dividend payments for so long don't change so much that shareholders are left holding the bag. When one considers the growth drivers and business model, Coke should be counted on for future dividend growth in excess of inflation or around 4-6% per year. Last increase refers to ex-dividend date. Coke is a blue-chip stock that is a great investment to consider for dividend investors looking to add yield to their portfolio with optionality for continued dividend increases well into the future. Disclaimer | KO's most recent quarterly dividend payment was made to shareholders of record on Tuesday, December 15. General Electric: Another Dividend Cut Expected in 12 to 18 Months simplysafedividends.com/general-electr… #dividend, Roper Technologies (ROP) simplysafedividends.com/roper-technolo… #dividend. Adjusting for currencies (over 50% of Coke’s sales are international), Coca-Cola has grown revenue more-or-less in line with global GDP growth over the last three years. How Safe Is Coca-Cola's Stock (KO) and Dividend? Coca-Cola Co (Symbol: KO) has been named to the Dividend Channel ''S.A.F.E. } The payout ratio should be a function of business model stability and investment opportunities. Overall, KO is #1 in value share in 25 of the top 32 global markets. Coca-Cola Co Remains a Top Dividend Stock. Many investors have been dubious about Coca-Cola's ability to keep growing. Coca-Cola has one of the higher dividend yields among the Dividend Aristocrats Index. The Coca-Cola Co (KO): A Safe Dividend King Trading At Its 52-Week Low. Pfizer’s COVID-19 Vaccine Shows Promise; Spin-off to Execute November 13 With Dividend Adjustment Next Quarter, Dominion’s Lower Dividend and New Business Mix Improve Safety Profile; We Plan to Hold Our Shares, AltaGas’s Falling Leverage Supports Dividend But Firm Will Evaluate Splitting Off Midstream Business, Altria’s Tobacco Business Remains Resilient But Longer-term Growth Uncertainties Linger, Johnson & Johnson (JNJ): A Dividend King That’s Built to Last. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. Its extraordinary track record and stable business model put Coca-Cola in the rarefied air of a Dividend King. Brand strength is reinforced by KO’s advertising spending ($4 billion in FY15 and up 14% Year-Over-Year) and global distribution reach, especially in emerging markets (81% of KO’s volume is outside of the US – Mexico, China, Brazil, and Japan are next four largest markets) that will become increasingly important growth drivers going forward. Reminding: In setting out investment rules for defensive investors, Benjamin Graham identified, as a one of several benchmarks, a current price of not more than 15-16 times average earnings over the past three years…, I know there should be a premium for quality, but it is so expensive…. Coke is the world’s largest beverage company with over $44 billion in sales and a portfolio of 20 brands with over $1 billion in sales (up from 10 in 2007). American Electric Power Co. Inc. – Current Dividend Yield of 2.9% If you are looking for a solid dividend stock, companies in the utility sector are often a safe bet. Consumption of traditional carbonated soft drinks has plunged to levels not seen since the 1980s, and that bodes ill for a company that gets so much of its value from its well-known brand. By comparison, Coca-Cola's biggest competitor in the beverage space has a payout ratio of around 65%, which is a good number for a mature company with a solid business that doesn't require a lot of capital investment to sustain. Why Coca-Cola is … Published on November 24, 2016 at 5:41 pm by Simply Safe Dividends in Dividend Stocks, News, Stock Analysis. Coca-Cola a Top Ranked SAFE Dividend Stock With 3.0% Yield (KO) C oca-Cola Co (Symbol: KO) has been named to the Dividend Channel ''S.A.F.E. })(); Very long-term Coke shareholders have been handsomely rewarded with uninterrupted dividends since 1920 and over a five decade growth streak. 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