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.
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Better than expected! 3.0%+ yield is making this investment look more attractive now :)
ReplyDeleteFI Fighter,
DeleteYeah 3% yield and 8% growth is certainly a sweet combination!
MDP
I just saw the raise and I'm pretty happy with that raise. I was expecting 6%, so 8% is more than welcome.
ReplyDeletePIP,
DeleteI 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
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!
ReplyDeleteW2R,
DeleteNo complaints here. I will gladly take an extra $20 in dividends and hopefully they will continue for many years to come.
MDP
Awesome!! Yes! Love it love it love it. Feels great to have skin in the game. Just love this journey. Take care my friends.
ReplyDeleteDH,
DeleteSkin in the game is what it is all about. Keep adding high quality companies like KO!
MDP
Nice! Gotta love KO's consistency! Im a happy shareholder :D
ReplyDeleteFFF,
DeleteCongrats on your raise!
MDP
Congrats the raise, MDP.
ReplyDeleteR2R,
DeleteThanks buddy! It was a pleasant surprise so I am certainly enjoying it.
MDP
Love the increase, happy shareholder here too.
ReplyDeleteTawcan,
DeleteThat's awesome! I am glad to be a fellow shareholder with you.
MDP
I am excited to be a fellow shareholder for KO. I actually bought more shares yesterday!
ReplyDeleteDM,
DeleteThat'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
Definitely nice to see. Not amazing, but still very good none the less.
ReplyDeleteMrStockFox,
DeleteIt seems about right for Coke. When the yield and growth rates exceed 10 that is pretty good.
MDP
Congrats. I hope I become a fellow KO shareholder soon.
ReplyDeleteMU,
DeleteGood luck with your future KO purchase. I will certainly be adding more myself.
MDP
May have to consider adding them to my portfolio as I typically look for a 3% or higher yield.
ReplyDeleteGYFG,
DeleteAbsolutely! 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
Great news MDP. Long KO.
ReplyDelete- Gremlin
DG,
DeleteIndeed! Congrats on your raise.
MDP
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.
ReplyDeleteDGJ,
DeleteI 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
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.
ReplyDeleteBest,
DWC
DWC,
DeleteIt's a very good day. I will be hopefully be adding more shares as well!
MDP
KO, making people rich since 1919. Love it.
ReplyDeleteAdam,
DeleteThat is a heck of a track record! I'm looking forward to many more like it.
MDP
MDP,
ReplyDeleteSomething 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!
DM,
DeleteKO 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
Gentlmen
ReplyDeleteI 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?
Anonymous,
DeleteIf 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
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 :)
ReplyDeleteDL
DL,
DeleteKO has been a pleasure to own and I look forward to adding more shares in the future...with a smile!
MDP
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
ReplyDeleteCaptain,
DeleteThe raise was higher than I expected also, but I will gladly take it. Enjoy your coke! :-)
MDP
MDP,
ReplyDeleteWhile 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.
FD,
DeleteAbsolutely. 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
MDP,
ReplyDeleteNice 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
Lanny,
DeleteI 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
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!
ReplyDeleteRegards
Marco
Marco,
DeleteI 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
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.
ReplyDeletePMU,
DeleteWell 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
Based on the amount of Coke I drink, they should be profitable.
ReplyDeleteNNL,
DeleteNo 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
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.
ReplyDeleteDivHut,
DeleteAbsolutely. 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