The Coca-Cola Company (NYSE:KO) to Issue Dividend Increase – $0.51 Per Share

The Coca-Cola Company (NYSE:KO) declared a quarterly dividend on Thursday, February 20th, Wall Street Journal reports. Stockholders of record on Friday, March 14th will be given a dividend of 0.51 per share on Tuesday, April 1st. This represents a $2.04 dividend on an annualized basis and a dividend yield of 2.86%. The ex-dividend date is Friday, March 14th. This is a boost from Coca-Cola’s previous quarterly dividend of $0.49.

Coca-Cola has increased its dividend payment by an average of 4.9% annually over the last three years and has raised its dividend annually for the last 63 consecutive years. Coca-Cola has a payout ratio of 60.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Coca-Cola to earn $3.19 per share next year, which means the company should continue to be able to cover its $1.94 annual dividend with an expected future payout ratio of 60.8%.

Coca-Cola Price Performance

Coca-Cola stock traded up $1.33 during trading hours on Friday, hitting $71.37. 21,596,706 shares of the company traded hands, compared to its average volume of 16,854,037. The firm’s 50-day simple moving average is $63.54 and its two-hundred day simple moving average is $66.41. The firm has a market cap of $307.46 billion, a P/E ratio of 28.90, a P/E/G ratio of 3.79 and a beta of 0.61. The company has a quick ratio of 0.84, a current ratio of 1.03 and a debt-to-equity ratio of 1.61. Coca-Cola has a 1-year low of $57.93 and a 1-year high of $73.53.

Coca-Cola (NYSE:KO) last announced its earnings results on Tuesday, February 11th. The company reported $0.55 EPS for the quarter, topping the consensus estimate of $0.51 by $0.04. Coca-Cola had a net margin of 22.59% and a return on equity of 45.37%. As a group, analysts forecast that Coca-Cola will post 2.96 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several analysts recently commented on KO shares. TD Cowen upgraded shares of Coca-Cola from a “hold” rating to a “buy” rating and set a $75.00 price target for the company in a report on Wednesday, January 8th. Piper Sandler decreased their price target on shares of Coca-Cola from $74.00 to $73.00 and set an “overweight” rating for the company in a report on Thursday, January 23rd. Deutsche Bank Aktiengesellschaft upgraded shares of Coca-Cola from a “hold” rating to a “buy” rating and raised their price target for the stock from $68.00 to $70.00 in a report on Thursday, December 12th. JPMorgan Chase & Co. reduced their target price on shares of Coca-Cola from $75.00 to $70.00 and set an “overweight” rating for the company in a research note on Tuesday, January 28th. Finally, Evercore ISI lifted their target price on shares of Coca-Cola from $72.00 to $75.00 and gave the company an “outperform” rating in a research note on Wednesday, February 12th. Two research analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $73.82.

About Coca-Cola

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores.