How much will Coca-Cola pay out in dividends this year?

Coca cola (K.O 0.58%) is a famous dividend king that has paid and increased its dividends for 62 years. It’s as reliable as dividend stocks come, and Warren Buffett has praised it as one of his favorite stocks, highlighting the dividend. Let’s see how much it will pay out in dividends this year.

A top dividend stock for all types of investors

Coca-Cola is known for its solid dividend, which usually pays a high yield and is consistent under all kinds of circumstances. Management paid the dividend during the tumultuous start to the pandemic, when sales fell and the payout ratio was well over 100%.

At the current share price, the dividend yields 2.6%, which is low for Coca-Cola. It is usually around 3%. But even at that yield, it’s still double what you’d get from S&P 500 index.

Why is it low these days? Dividend yield works inversely with price earnings, and Coca-Cola stock is beating the market, up 22% this year, compared to 17% for the S&P 500. Coca-Cola is a great dividend stock, but it doesn’t usually beat the market . Right now, investors appreciate stability and pricing power in a volatile market. It has performed phenomenally over the past two years, finally surpassing the revenue of 10 years ago with record sales numbers.

Big sales fill its cash coffers and fund its legendary dividend. It has made a net income of $10.7 billion in 2023 and has a payout ratio of about 75%. This allowed the company to pay out $7.95 billion in total dividends last year. Management raised the dividend for the 62nd time in February to $0.485 per share quarterly, which translates to $1.94 per share in total in 2024. It has $4.31 billion in shares outstanding, meaning it will is paying an estimated $8.36 billion in dividends in 2024 — and that it should certainly thank its shareholders.