The Coca-Cola Dividend: My Prediction

The Coca-Cola dividend annual raise is one of the few traditions in corporate America that happens with generational predictable regularity. Every February since 1963, the Coca-Cola dividend has been raised. And even before that, the Coca-Cola dividend had been at least maintained every year dating back to the 1920 IPO. In recent years, Coca-Cola has gotten into the habit of raising its dividend on the third Thursday of the month. That means there is a quite high probability that the Coca-Cola Board of Directors will raise the Coca-Cola dividend this Thursday, February 18th.

The conventional wisdom is that Coca-Cola will need to relax from its ten-year record of 9.5% annual dividend growth and reduce its dividend payout ratio a bit. There is some truth to this consensus, to a point. It is factually correct to point out that Coca-Cola’s dividend has increased from the 45% to 50% in the early … Read the rest of this article!