Among the many advantages the stock market provides to potential investors, dividend investing is one of the most popular and sought-after strategies. And regarding reliability, few companies can rival the soft drinks giant Coca-Cola (NYSE: KO).
Coca-Cola has recently announced its 62nd consecutive annual dividend increase. The company declared a quarterly dividend of $0.485 per share, which increased from the previous $0.46.
In 2023, the company distributed $8 billion in dividends to shareholders, contributing to a cumulative total of $84.7 billion in dividends paid to shareholders since January 1, 2010.
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Warren Buffett is a firm believer in this stock
The Chairman of Berkshire Hathaway, Warren Buffett, advises investors to prioritize investing in companies with a robust dividend track record over allocating funds to the broader stock market.
KO has consistently been one of Buffett’s top dividend investments, reflecting his preference for companies that consistently boost yields over time. This is evident in the stock’s long-standing presence in his portfolio.
Warren Buffett and Berkshire Hathaway possess 400 million shares of Coca-Cola, indicating they are poised to receive a quarterly dividend payment of approximately $194 million solely from their holdings in the company.
What do analysts think about KO stock?
The optimism regarding KO stock also seems to grapple TradingView analysts. They awarded this stock with a ‘buy’ rating based on 22 examinations. Of these, 13 went for a ‘strong buy’ option, 4 advised a ‘buy,’ and 5 advised a ‘hold.’
Their price target is set at $66.30, which is an 11.62% increase from the current valuation.
The optimistic outlook arises from Coca-Cola’s latest quarterly report. The company reported adjusted earnings per share of 49 cents, perfectly aligning with the consensus estimate.
Moreover, revenue for the period reached $10.85 billion, exceeding the anticipated $10.68 billion. This indicates that Coca-Cola performed slightly better than anticipated, showcasing resilience and possibly signaling positive momentum in its operations.
With its consistent revenue growth, robust quarterly reports, and over half a century of consecutive dividend increases, Coca-Cola emerges as a prime choice for investors seeking dividend-paying companies.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
