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Is Now the Time to Take Advantage of Coca-Cola Dividends?

KO is still trading near its April all-time highs

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At the end of April, Coca-Cola Co (NYSE:KO) declared a dividend of $0.44 per common share. The dividend will be payable on July 1 to shareowners of record by June 15. Earlier this year, KO's board of directors approved the company’s 60th consecutive annual dividend increase, raising the quarterly dividend approximately 5% from $0.42 to $0.44. With this update, Coca-Cola offers a dividend yield of 2.71% and a forward dividend of $1.76.

Coca-Cola stock is cooling from its record high just above the $67 level, touched on April 25. The 40-day moving average has kept most of these losses in check, though the $65 level has acted as pressure on he charts during the past few sessions. Year-to-date, KO is 9% higher.

ko may 6

The beverage company’s trailing 12-month revenues and net income are up 4% and 5.5%, respectively, since fiscal 2021. Coca-Cola is also estimated to grow revenues 8.5% and earnings 6.5% for fiscal 2022, as well as increase revenues 5.3% and earnings 7.3% for fiscal 2023.

However, Coca-Cola stock does carry a high valuation for the business’ growth rate at the moment. KO trades at a forward price-earnings ratio of 25.71 and a price-sales ratio of 6.87. Nonetheless, Coca-Cola stock continues to be one of the safest options for dividend investors due to their strong track-record and continued growth.

 

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