Thursday, February 19, 2015

KO raises dividend 8.2% --- New yield is 3.15%


Today Coca Cola (KO) announced that it is raising its quarterly dividend $.025 from $.305 to $.33 which is an 8.2% increase from last year. The new yield for KO increases to 3.15%

The record date is March 16th and the pay date is April 1st.

Since I currently own 204.63 shares, my yearly dividends will increase by $20.46. This is a really solid raise from KO and the stock still looks attractive to me. In fact I picked up a few shares on Tuesday.

Hopefully DLR and WM will make official dividend increase announcements in the next couple of weeks.

50 comments:

  1. Better than expected! 3.0%+ yield is making this investment look more attractive now :)

    ReplyDelete
    Replies
    1. FI Fighter,

      Yeah 3% yield and 8% growth is certainly a sweet combination!

      MDP

      Delete
  2. I just saw the raise and I'm pretty happy with that raise. I was expecting 6%, so 8% is more than welcome.

    ReplyDelete
    Replies
    1. PIP,

      I was expecting $.32 so this was a great surprise. Hopefully the business will start firing on all cylinders soon so they can keep these raises coming.

      MDP

      Delete
  3. This was about what I was expecting from them, so I can't complain. If they want to keep pushing the 8% mark every year I'm happy to accept it!

    ReplyDelete
    Replies
    1. W2R,

      No complaints here. I will gladly take an extra $20 in dividends and hopefully they will continue for many years to come.

      MDP

      Delete
  4. Awesome!! Yes! Love it love it love it. Feels great to have skin in the game. Just love this journey. Take care my friends.

    ReplyDelete
    Replies
    1. DH,

      Skin in the game is what it is all about. Keep adding high quality companies like KO!

      MDP

      Delete
  5. Nice! Gotta love KO's consistency! Im a happy shareholder :D

    ReplyDelete
  6. Replies
    1. R2R,

      Thanks buddy! It was a pleasant surprise so I am certainly enjoying it.

      MDP

      Delete
  7. Love the increase, happy shareholder here too.

    ReplyDelete
    Replies
    1. Tawcan,

      That's awesome! I am glad to be a fellow shareholder with you.

      MDP

      Delete
  8. I am excited to be a fellow shareholder for KO. I actually bought more shares yesterday!

    ReplyDelete
    Replies
    1. DM,

      That's awesome. I bought more shares on Tuesday. I plan on continuing to add more shares as this is a core holding in my opinion.

      MDP

      Delete
  9. Definitely nice to see. Not amazing, but still very good none the less.

    ReplyDelete
    Replies
    1. MrStockFox,

      It seems about right for Coke. When the yield and growth rates exceed 10 that is pretty good.

      MDP

      Delete
  10. Congrats. I hope I become a fellow KO shareholder soon.

    ReplyDelete
    Replies
    1. MU,

      Good luck with your future KO purchase. I will certainly be adding more myself.

      MDP

      Delete
  11. May have to consider adding them to my portfolio as I typically look for a 3% or higher yield.

    ReplyDelete
    Replies
    1. GYFG,

      Absolutely! This is one of a handful of companies that I plan to keep until I die. I really can see myself adding more shares each year until I reach FI.

      MDP

      Delete
  12. That's a nice raise. I have been adding shares lately as well (though my position is about 10% of yours) and I am happy for the raise. But I am wondering what this raise will do to the payout ratio. Need to keep an eye on that as well.

    ReplyDelete
    Replies
    1. DGJ,

      I agree with you on the payout ratio. Eventually Coke is going to have to improve revenues and market share to keep raising earnings and dividends Congrats on the raise!

      MDP

      Delete
  13. Congrats to all here who got a raise today! KO is one of my larger positions so it's a good day indeed. I'll gladly add another chunk of shares on a pullback to $40 or less.

    Best,
    DWC

    ReplyDelete
    Replies
    1. DWC,

      It's a very good day. I will be hopefully be adding more shares as well!

      MDP

      Delete
  14. KO, making people rich since 1919. Love it.

    ReplyDelete
    Replies
    1. Adam,

      That is a heck of a track record! I'm looking forward to many more like it.

      MDP

      Delete
  15. MDP,

    Something about getting a pay raise for effectively doing nothing that is just really sweet. Almost as sweet as a can of Coca-Cola...almost. Think I'll crack open a can to celebrate.

    Best regards!

    ReplyDelete
    Replies
    1. DM,

      KO continues to be a pleasant surprise from a dividend perspective. Now if they can ramp up their operations I will really be impressed. Hopefully higher earnings will be in the cards for the remainder of the year.

      MDP

      Delete
  16. Gentlmen
    I have been debating what to do with this extra cash I have. I have 10,000 sitting in my savings acct. I have been saving this for an investment property that my business partner and I plan on buying when we find a good deal in my town. I was debating buy $10,000 of KO using my loyal three acct. I could get the dividends and leave it there until I need it if I do. I already max out my 401k, and roths for my wife and I.

    Thoughts?

    ReplyDelete
    Replies
    1. Anonymous,

      If you are planning on using the money soon for another investment opportunity, I would suggest keeping it in some kind of money market account. Just my $.02.

      MDP

      Delete
  17. Probably everyone's favourite stock has done it again! Great rise in dividends. I don't currently own any KO, but it's one of those stocks that should be in any DG investor's portfolio. Hopefully next time there is a raise I'll be the one blogging about it :)

    DL

    ReplyDelete
    Replies
    1. DL,

      KO has been a pleasure to own and I look forward to adding more shares in the future...with a smile!

      MDP

      Delete
  18. Thanks for the good news MPD, this raise was better than I expected. I think I'll celebrate the good news with a coke this weekend. :-o

    ReplyDelete
    Replies
    1. Captain,

      The raise was higher than I expected also, but I will gladly take it. Enjoy your coke! :-)

      MDP

      Delete
  19. MDP,

    While the impact of this pay raise from KO is felt differently based on how little I own (my pay raise won't even cover the cost of 1 can of their sugary goodness), it is still an affirmation that what we are all doing here is working. Thanks for being on top of this and sharing the good news. I imagine with the size of your stake in the company, this date is circled on your calendar every year.

    ReplyDelete
    Replies
    1. FD,

      Absolutely. Anytime you can increase your income without adding additional capital, it is a good thing. Keep adding shares of high quality companies and the results will pay off in time!

      MDP

      Delete
  20. MDP,

    Nice increase. Theirs was bigger than Pepsi's this year,but Pepsi increased on a different month than in the past -- haven't read the reports, but wonder if it may be a sign if there's a second bump. Regardless - Coke throwing out an above 8% growth to the dividend is very solid, coupled with a yield of over 3% and it looks like you've got a great combo.

    -Lanny

    ReplyDelete
    Replies
    1. Lanny,

      I love that combined of yield + growth > 10. I have seen anything regarding Pepsi yet, although I may have missed the news of a dividend increase. In any event, KO and PEP make a fantastic 1-2 punch for anyone's portfolio!

      MDP

      Delete
  21. Great company! Coca Cola is the classic "no brainer" (Charlie Munger) of individual stock investing. I invest personally a good part of my portfolio in this company. I like also their move to Keuring and energy drinks. It is impressive, how steady this company behaves. Great company with great net margins for their owners like us!

    Regards

    Marco

    ReplyDelete
    Replies
    1. Marco,

      I like the moves you mentioned as well. I see KO continuing to go on the offensive in order to keep dominating the overall beverage space. I love the simplicity of the business and would love to see the shares stay around $41 or lower! That way I can continue building a position that I can keep forever!

      MDP

      Delete
  22. So they have n 80% payout ratio? Ouch thats really high. While this year was a nice raise what are the chances next year will have one of equal size.

    ReplyDelete
    Replies
    1. PMU,

      Well the raises will certainly slow down if revenue, earnings, and cash flow don't show yearly improvements. Hopefully additions like Keurig will enable future growth. Also recently currency issues aren't help overseas businesses right now.

      I will certainly watch closely to see how things progress.

      MDP

      Delete
  23. Based on the amount of Coke I drink, they should be profitable.

    ReplyDelete
    Replies
    1. NNL,

      No doubt! I am amazed at the number of Cokes that people around the office drink each day. Supposedly people are changing their beverage choices to healthier alternative. I personally don't see that in my neck of the woods.

      MDP

      Delete
  24. This was a welcome increase to say the least. It seems KO has been stuck in neutral for some time regarding share price and I certainly did not expect an 8%+ increase in dividend. Now that KO is well over 3% in yield I'm sure it will become a lot more enticing to many of the dividend bloggers, myself included.

    ReplyDelete
    Replies
    1. DivHut,

      Absolutely. I like the combining of yield + div growth > 10. Hopefully KO will continue to deliver great dividend growth. I would like to see some improvements in revenue and earnings as well. I do have confidence in their future.

      MDP

      Delete