While flashier stocks grab headlines, Coca-Cola is a Dow Jones 30 stock that just announced its 64th consecutive annual dividend increase, a milestone that very few public companies have reached.
For dividend investors, this is the kind of stock that doesn’t need a big story. The story writes itself.
Coca-Cola just raised its dividend for the 64th straight year
On Feb. 19, Coca-Cola’s (KO) board of directorsapproved a roughly 4% increase in the quarterly dividend, raising it from $0.51 to $0.53 per common share. That equals an annualized payout of $2.12 per share, yielding 2.63%.
The first-quarter dividend is payable on April 1 to shareholders of record as of March 13.
That kind of consistency is rare. Coca-Cola is considered a Dividend King, a title reserved for companies that have raised their payout to shareholders for at least 50 successive years. Only a handful of companies in the entire U.S. stock market qualify.
In 2025, the company returned$8.8 billion in dividends to shareholders. Since Jan. 1, 2010, total dividend payments have reached $101.9 billion.
A focus on consistent dividend growth
Coca-Cola is not a growth stock in the traditional sense, and nobody is buying KO for a quick double. But what it offers is arguably more valuable for long-term investors: predictability.
The company was founded in 1892. It operates in 200 countries and has built a business that delivers 2.2 billion servings a day.
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That kind of scale protects the dividend. Soft drinks, water, and juices are everyday purchases. Consumers don’t stop buying them when the economy gets bumpy.
The financial results back that up.
- In 2025, Coca-Cola reported $11.4 billion in adjusted free cash flow. That’s the cash the business generates after covering its operating costs and capital spending — the pool from which dividends are paid.
- For 2026, management projects that this number will grow. The company expects to generate approximately $12.2 billion in free cash flow this year. More free cash flow means the dividend has more room to grow.
CEO-elect Henrique Braun, who takes the reins from outgoing chief James Quincey, struck a confident tone at the Consumer Analyst Group of New York conference.
He pointed to the company’s portfolio of 32 billion-dollar brands and an unmatched global bottling network as the foundation for the next chapter of growth.
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“We expect organic revenue growth of four percent to five percent,” CFO John Murphy told investors, adding that the company also expects comparable earnings per share growth of 7-8% versus $3 in 2025.
Murphy also offered more detail.
That kind of earnings trajectory is what makes continued dividend growth not just possible, but also likely.
What the Coca-Cola dividend looks like, by the numbers:
For investors evaluating KO as an income play, here’s a full breakdown of the key dividend metrics.
- Annual dividend per share: $2.12 (2026), up from $2.04 in 2025 and $0.62 in 2006
- Quarterly dividend per share: $0.53
- Dividend yield: Approximately 2.6%
- Consecutive years of dividend growth: 64
- Dividend growth rate (20-year CAGR): Approximately 6.3%
- Free cash flow payout ratio (2025): Approximately 73%
- Total dividends paid since 2010: $101.9 billion
- Total dividends returned to shareholders in 2025: $8.8 billion
The payout ratio is worth a closer look. At roughly 73% of free cash flow, Coca-Cola has room to keep growing the dividend without stretching its finances. Management has guided that ratio to remain near 75% long-term, which signals discipline.
Analysts tracking the blue-chip dividend stock forecast the annual dividend to increase to $2.68 per share in 2030.
Coca-Cola is Warren Buffett’s favorite dividend stock
One fact worth noting: Berkshire Hathaway has owned Coca-Cola stock since 1988. As of Dec. 31, the Warren Buffett-led company owned 400 million shares.
That stake will generate $848 million in annualized passive income this year. In 1988, the annual dividend income would be closer to $30 million.
Buffett has called Coca-Cola one of his best investments ever. The reason is simple. He bought a business that keeps sending bigger checks every year without asking for much in return.
That’s the whole point of a Dividend King. It’s not about getting rich fast. It’s about getting paid consistently over decades.
For income investors seeking a low-drama, high-reliability stock, Coca-Cola checks every box. The 64th dividend raise is already in the books.
The 65th is just 12 months away.
Related: Coca-Cola and Pepsi bring back classic flavors, launch new ones
