The Coca-Cola Company (NYSE:KO) has been having a good year. The stock is up roughly 27% year-to-date, helped by solid earnings, better demand, and renewed interest in defensive companies. After a gain like that, it is worth taking another look at the dividend.
Is Coca-Cola still a good buy for income-focused investors at this price? The Coca-Cola Company (NYSE:KO) has one of the best dividend records in the market. In February, it raised its quarterly dividend to $0.53 per share, or $2.12 annually, from $2.04 in 2025.
That was the company's 64th consecutive annual dividend increase. The streak has survived recessions, inflation, and plenty of changes in consumer tastes. At recent prices, the $2.12 annualized dividend gives investors a forward yield of roughly 2.4%-2.5%.
The yield is not especially high. That is not really the point with Coca-Cola, though. The appeal is the steady income and the expectation that the company will keep raising the payout over time.
The bigger question is whether Coca-Cola is generating enough cash to keep the dividend growing. So far, the cash-flow numbers look good. The Coca-Cola Company (NYSE:KO) generated $7.5 billion in operating cash flow and $6.9 billion in free cash flow in the first half of 2026.
Management has also raised its full-year outlook. It now expects about $12.4 billion in free cash flow, based on roughly $14.6 billion in operating cash flow and $2.2 billion in capital expenditures. That gives the dividend a decent cushion.
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