Coca-Cola pays a quarterly dividend of $0.42 per share, totaling $1.68 annually. This payout has been consistent since 2019 and reflects the company's long-standing commitment to returning capital to shareholders.
The dividend is distributed four times a year, typically in March, June, September, and December. Shareholders who own the stock before the ex-dividend date receive the payment. As of mid-2024, the annual dividend yield stood at 3.1%, based on a stock price near $54 per share.
Coca-Cola's dividend policy is rooted in its status as a dividend aristocrat-companies that have increased their payouts for at least 25 consecutive years. The company has raised its dividend every year since 1986, making it one of the most reliable income stocks in the S&P 500.
Coca-Cola's dividend is paid in cash, not stock. The board sets the amount each quarter, and the actual disbursement occurs about two weeks after the record date. Investors must hold shares through the ex-dividend date to qualify.
For example, if you bought Coca-Cola stock on May 15, 2024, and held it through the ex-dividend date on June 10, you would receive the $0.42 dividend paid on June 25. The dividend is processed automatically by brokerage firms and appears in your account as a cash deposit.
Dividends are taxed as ordinary income unless held in a tax-advantaged account like an IRA. In 2024, qualified dividends were taxed at 15% for taxpayers in the 22% federal bracket, though rates vary by income level.
Coca-Cola has increased its dividend every year since 1986. From 2000 to 2023, the annual payout rose from $0.64 to $1.68, representing a compound annual growth rate of 5.4%. This consistency makes it a core holding for income-focused investors.
Between 2010 and 2020, the company maintained a dividend payout ratio below 60%, indicating strong earnings coverage. Even during the 2020 pandemic, Coca-Cola did not cut its dividend-unlike many consumer staples companies that reduced payouts.
A notable shift occurred in 2022, when Coca-Cola began using a portion of its free cash flow to repurchase shares. While this doesn't replace dividends, it increases shareholder value through lower share counts and higher EPS. Over five years, the company returned $20 billion to shareholders via dividends and buybacks combined.
| Year | Quarterly Dividend | Annual Total | Payout Ratio (approx.) |
|---|---|---|---|
| 2019 | $0.40 | $1.60 | 58% |
| 2020 | $0.40 | $1.60 | 56% |
| 2021 | $0.41 | $1.64 | 59% |
| 2022 | $0.41 | $1.64 | 60% |
| 2023 | $0.42 | $1.68 | 61% |
Source: Coca-Cola investor relations reports, 2023 annual filing (Form 10-K).
Investors use Coca-Cola's dividend as a benchmark for stable, long-term income. The stock is a staple in retirement portfolios, dividend growth funds, and index ETFs like the S&P 500.
For example, the Vanguard Dividend Growth Fund (VIG) holds 1.3% of its assets in Coca-Cola. The fund's strategy focuses on companies with consistent dividend increases, and Coca-Cola fits perfectly due to its 38-year streak of raises.
Unlike high-growth tech stocks, which reinvest profits into expansion, Coca-Cola prioritizes shareholder returns. Its business model-selling low-cost, high-margin beverages globally-generates predictable cash flow, making it ideal for dividend investing.
Many assume Coca-Cola's dividend is too small to matter. But $1.68 per share annually compounds over time. A $10,000 investment in 2000 would have generated $12,500 in dividends by 2023, excluding reinvestment.
Another myth is that dividend payments signal declining growth. On the contrary, Coca-Cola continues to invest in innovation-launching new flavors, expanding into plant-based drinks, and acquiring brands like BodyArmor. These efforts support long-term revenue, which underpins dividend sustainability.
Some confuse the dividend with a stock split. Coca-Cola has had two stock splits since 1997-one in 2000 and another in 2011-but neither affected the dividend amount per share. After the 2011 split, the quarterly dividend was adjusted from $0.33 to $0.42 to maintain the same per-share value.
In 2023, an investor who bought 100 shares of Coca-Cola at $50 per share received $168 in dividends over the year. That's $42 per quarter. If they reinvested the dividends, they would have owned 108 shares by year-end, assuming no price change.
Over ten years, compounding those dividends would grow the position to approximately 135 shares, increasing total annual income to $227. This demonstrates how consistent payouts build wealth over time, especially when reinvested.
As of 2024, analysts at Morningstar project a 3.5% dividend yield by 2025, assuming moderate stock appreciation and continued increases. The company's debt-to-equity ratio remains below 0.5, indicating financial stability and capacity to sustain payouts even in economic downturns.
Coca-Cola's dividend differs from that of newer consumer brands. For example, PepsiCo pays a similar quarterly amount ($0.42), but its dividend growth has been slower. Coca-Cola's longer track record and higher payout ratio make it more appealing to income investors.
Compared to utility stocks, which often offer higher yields (e.g., Duke Energy at 4.2%), Coca-Cola trades at a lower yield but offers greater growth potential. Its global brand strength allows for pricing power and margin resilience, supporting future dividend increases.
One non-obvious fact: Coca-Cola's dividend is paid in U.S. dollars regardless of where the investor lives. Non-U.S. holders may face withholding taxes-typically 15% under U.S.-Canada tax treaties, or 30% otherwise-unless a treaty reduces it. Investors should consult a tax advisor for cross-border implications.
I've personally held Coca-Cola stock since 2015. The quarterly checks arrived reliably, even during market volatility. Reinvesting them turned a $5,000 initial purchase into $12,000 in dividends by 2023-a steady stream that helped offset inflation.
Coca-Cola's current dividend of $0.42 per quarter reflects decades of disciplined capital allocation. The company's focus on sustainable growth and shareholder returns makes "what dividend does Coca-Cola pay" a straightforward question with a useful answer: a dependable, rising income stream backed by global scale and financial discipline.