August 12, 2025 a 11:31 am
📊 Dividend Analysis - The Coca-Cola Company
The Coca-Cola Company, a stalwart in the beverage sector, stands out for its impressive dividend history and attractive yield. With a market capitalization over $300 billion, it remains a preferred choice for income-focused investors. Its strong brand and consistent financial performance underscore its appeal, though recent payout ratios suggest some caution.
🗣️ Overview
The Coca-Cola Company, a leading player in the beverage industry, offers a robust dividend yield of 2.85%. With dividends per share currently at $1.94 and a stable history of 56 years, it assures investors of continuity. However, vigilant monitoring is advised due to recent payout metrics.
| Details | Value |
|---|---|
| Sector | Beverages |
| Dividend yield | 2.85% |
| Current dividend per share | $1.94 |
| Dividend history | 56 years |
| Last cut or suspension | None |
📉 Dividend History
Coca-Cola's lengthy dividend history is a testament to its stability and shareholder focus. Understanding past payouts is crucial for predicting future trends. Such a track record instills confidence among investors looking for reliable income.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | $1.53 |
| 2024 | $1.94 |
| 2023 | $1.84 |
| 2022 | $1.76 |
| 2021 | $1.68 |
📈 Dividend Growth
Assessing dividend growth highlights Coca-Cola's potential for future income increments. This aspect, pivotal for both investors and analysts, reflects the company's earnings growth and profit distribution strategy.
| Time | Growth |
|---|---|
| 3 years | 4.91% |
| 5 years | 3.93% |
The average dividend growth is 3.93% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are key indicators of dividend sustainability. Coca-Cola's earnings and free cash flow-based payout ratios provide insights into its financial health and dividend coverage.
| Key figure | Ratio |
|---|---|
| EPS-based | 68.52% |
| Free cash flow-based | -1156.32% |
While the EPS-based payout ratio is within a comfortable range, the FCF-based ratio suggests potential liquidity concerns, warranting closer examination of operational efficiencies.
🏦 Cashflow & Capital Efficiency
Evaluating cash flow metrics offers insights into Coca-Cola's financial stability and capital efficiency. Key indicators such as Free Cash Flow Yield and Earnings Yield reveal operational robustness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 1.77% | 3.83% | 3.46% |
| Earnings Yield | 3.96% | 4.21% | 3.47% |
| CAPEX to Operating Cash Flow | 30.33% | 15.97% | 13.47% |
| Stock-based Compensation to Revenue | 0.61% | 0.55% | 0.83% |
| Free Cash Flow / Operating Cash Flow Ratio | 69.67% | 84.03% | 86.53% |
The evaluation indicates stable cash flow operations and robust capital reinvestment capacity, endorsing long-term financial stability.
🏢 Balance Sheet & Leverage Analysis
Assessing balance sheet health is vital for understanding Coca-Cola's leverage and liquidity. Key metrics like Debt-to-Equity and Current Ratio highlight financial resilience.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.84 | 1.67 | 1.68 |
| Debt-to-Assets | 45.49% | 44.45% | 43.77% |
| Debt-to-Capital | 64.79% | 62.60% | 62.75% |
| Net Debt to EBITDA | 2.21 | 2.18 | 2.25 |
| Current Ratio | 1.03 | 1.13 | 1.15 |
| Quick Ratio | 0.84 | 0.95 | 0.93 |
| Financial Leverage | 4.05 | 3.77 | 3.85 |
The analysis portrays a well-leveraged balance sheet with sound liquidity management, although monitoring debt levels is advisable.
🏆 Fundamental Strength & Profitability
Exploring fundamental metrics provides insights into Coca-Cola's profitability and efficiency, with prominent indicators such as ROE and margins reflecting operational strength.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 42.77% | 41.30% | 39.59% |
| Return on Assets | 10.57% | 10.97% | 10.29% |
| Net Margin | 22.59% | 23.42% | 22.19% |
| EBIT Margin | 31.33% | 31.65% | 29.23% |
| EBITDA Margin | 33.61% | 34.11% | 32.15% |
| Gross Margin | 61.06% | 59.52% | 58.14% |
| R&D to Revenue | 0% | 0% | 0% |
The metrics reflect strong profitability dynamics. Coca-Cola's efficient use of assets and equity solidify its position as a market leader.
📈 Price Development
💹 Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 30/40
🔍 Rating
Despite the challenges posed by high payout ratios and the lack of R&D investment, Coca-Cola maintains robust dividend stability and financial credibility. Recommended for investors prioritizing steady income streams.
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