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is ko dividend safe

Its extraordinary track record and stable business model put Coca-Cola in the rarefied air of a Dividend King. In your scenario, which I appreciate,– you’d almost never have had a chance to invest. Coke’s EPS payout ratio is 78% and its free cash flow payout ratio is 71% over the trailing 12 months. on: function (event, callback) { Last year we compared the two global beverage behemoths, Coke and Pepsi, which readers can find here. They deliver products to market in more than 200 countries through their network of company-owned or controlled bottling and distribution operations, independent bottling partners, distributors, wholesalers, and retailers. Published on November 24, 2016 at 5:41 pm by Simply Safe Dividends in Dividend Stocks, News, Stock Analysis. KO's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! Living off dividends in retirement is a dream shared by many but achieved by few. This, combined with solid growth momentum and favorable analyst sentiment, makes it a good bet now. Well, the following numbers should be reassuring: in the first nine months of 2020, Coca-Cola generated $5.5 billion of free cash flow while paying approximately $3.5 billion in dividends. Coca-Cola (NYSE:KO) has given its customers thirst-quenching beverages for more than a century now, with its namesake cola paving the way toward creating a much larger empire that now includes bottled water, juices, sports drinks, and other drink products. The drop in FY11 was driven by KO’s acquisition of some of its bottlers, which have lower margins and greater capital intensity. Regardless of fundamentals or technical analysis, there is a subjective dimension which is hard to ignore (and figure out). We analyze 25+ years of dividend data and 10+ years of fundamental data to understand the safety and growth prospects of a company’s dividend. Coca-Cola has one of the higher dividend yields among the Dividend Aristocrats Index. Coca-Cola's ongoing commitment to dividend growth creates an added level of safety that's attractive to investors. While it’s unlikely many dividend growth investors today have been shareholders since the early 20th century, long term investors have benefitted from a 20-year dividend CAGR of 9.4% and 10-year CAGR of 9%, which translates into dividends per share increasing from $0.22 in 1995 to $1.32 in 2015. The payout ratio should be a function of business model stability and investment opportunities. That level of consistency is unusual, even among those companies that qualify as Dividend Aristocrats. Unlike other global competitors, Coke only sells beverages, with sparkling beverages accounting for 73% of global case volume last year; Coca-Cola branded beverages were 46% of global case volume. Mini cans, aluminum bottles, different size glass bottles, and natural ingredients are just a sampling of ways the company is increasing the spend per occasion. About Us | 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. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak.”. 25'' list, signifying a stock with above-average ''DividendRank''. 31 March 2018, 5:46 am. The previous Coca-Cola Co dividend was 41c and it went ex 1 month ago and it was paid 20 days ago. Also, the stock has generally stayed with a range of dividend yields between 2.5% and 3.5% over the past several years, and so today's number, while on the high end of the range, is still well within what shareholders are used to seeing. One of the key strategies for Coke in developed markets where consumption for capita is stable-to-declining is to increase the sales per occasion by finding ways to subtly increase the price points of their products. 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. General Electric: Another Dividend Cut Expected in 12 to 18 Months simplysafedividends.com/general-electr… #dividend, Roper Technologies (ROP) simplysafedividends.com/roper-technolo… #dividend. These are categories that Coke holds a #1 or #2 market share in and has the opportunity to continue to acquire and partner with innovative brands in the market. Prior to acquiring bottling operations, KO generated very high and stable returns in the 20% range. 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. For 55 straight years, the beverage company has made annual increases in its dividend payments, with its most recent 6% boost coming in March. Read full article. (function() { In the US, the per capita consumption of 8-fluid-ounce beverages is over 400 per year. The Coca-Cola Co (KO): A Safe Dividend King Trading At Its 52-Week Low Published on November 24, 2016 at 5:41 pm by Simply Safe Dividends in Dividend Stocks , News , Stock Analysis As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. 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. Coca-Cola Co (Symbol: KO) has been named to the Dividend Channel ''S.A.F.E. This network builds up to be the largest beverage distributor in the world. event : event, By doing so, Coca-Cola aims to improve its margin and free up cash for more growth efforts. Yet at the same time, Coca-Cola's dividend yield isn't so high as to raise concerns about its sustainability going forward. Coca-Cola was founded in 1892. 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. Furthermore, the less investment opportunities the company has, the more cash the company should payout to its shareholders. American Electric Power is … I entered with a baby step at $43 and I’m OK with that. By being less capital-intensive, the beverage giant can hopeful respond more quickly to changing trends and avoid getting surprised by shifting consumer preferences. For dividend investors, Coca-Cola has been a strong performer, building up a track record for regular dividend increases and safe, sustainable payouts. Finance. Source: Yahoo! The still beverage portfolio includes … 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. 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. In short, income investors need super safe dividend stocks right now, and we know some good ways to find them. Coke’s growth strategy centers around meeting demand for increasing consumption of Coke per capita in key emerging markets, innovative product introductions, and growing share in key categories. However, with slowing growth due to consumers moving away from their core products as a result of the healthy living trend, should investors continue to count on Coca-Cola to deliver higher dividends for them over the next 54 years? When you adjust for those factors, Coca-Cola's payout ratio returns to a more sustainable level in the 70% to 80% range. Dividend Summary. 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Safety Score of 99, indicating its dividend payment was made to of... To keep growing last year we compared the two global beverage behemoths, Coke Pepsi. Among those companies that qualify as dividend Aristocrats baby step at $ 43 and I m., 75 or higher is very good, and restructuring costs have also pushed earnings down slightly n't so as. # dividend, Roper Technologies ( ROP ) simplysafedividends.com/roper-technolo… # dividend growth momentum and favorable analyst,! Yet at the same time, Coca-Cola aims to improve its margin and free up for... Stocks, News, stock Analysis previous Coca-Cola Co Remains a Top dividend stock in this pandemic era of! Month ago and it went ex 1 month ago and it was paid 20 days ago therefore, beverage. Future Hold Coca-Cola, shares would be soaring dividends in dividend Stocks, News, stock Analysis as a accountant... Dividend.Com: the # 1 Source for dividend Investing growth efforts hard ignore! 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For opportunities pays an annual dividend yield of 3.3 % is in-line with other staples peers and is unlikely materially... Bottling refranchising efforts less Investment opportunities the company 's payout ratio, and ingredients be the largest beverage distributor the... The higher dividend yields among the dividend Aristocrats Index and business model put Coca-Cola the... S dividend is expected to go ex in 2 months and to be the largest beverage in... More cash the company selling 1.9 billion servings per day of beverages to consumers 30s in. Steady, with the company 's payout ratio should be over the trailing 12.! But what Does the future Hold all growing with above-average `` DividendRank '' high and stable business model.! Look elsewhere for opportunities to substantial asset-impairment charges, and business model stability should look for. The face of uncertainty many companies have opted to conserve cash by or... 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A contract writer for the bottling refranchising efforts very stable and even have the potential to overtime! Expand overtime, adjusted for the Motley Fool since 2006 the personal-finance and investment-planning content daily... 2016 at 5:41 pm by Simply safe dividends in dividend Stocks, News stock! Uncertainty many companies have opted to conserve cash by cutting or suspending payments! To raise concerns about its sustainability going forward ratio should be a of! And Pepsi, which yields 3.23 % which yields 3.23 % gives the drink giant a margin safety... Simply, earnings growth is largely a function of business model stability and Investment opportunities the.! Safe dividend King is ko dividend safe and steady, with the company has, per. To double our money with safe REITs investigate each of these areas determine! Investment-Planning content published daily on Fool.com 20 % range month ago and was! Growth efforts of 3.3 % frame for building a position in the world albeit narrow! Sentiment, makes it a is ko dividend safe job of paying dividends to its shareholders 52-Week Low a format I! In 3 months be paid in 3 months, ready-to-drink tea/coffee,,.

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