From Yahoo Finance: 2025-06-15 07:33:00

Coca-Cola has increased its annual dividend for 63 consecutive years, showcasing its pricing power to offset periods of declining shipping volume. The company trimmed its portfolio by nearly half to focus on operational efficiency. Coca-Cola’s dividend security is unmatched, having paid dividends since 1920 and increasing them for 63 years.

Dividends are a crucial way for companies to reward shareholders, providing a lucrative two-for-one with stock price growth. Coca-Cola’s current quarterly dividend is $0.51, yielding around 2.7%, which is more than double the S&P 500 average. The company’s dividend yield may be lower due to its stock price increase in 2025.

Coca-Cola’s products are considered consumer staples, ensuring stable sales regardless of economic conditions. The company’s ability to increase prices when volume slows down showcases its pricing power. Despite facing headwinds, Coca-Cola’s core business remains relatively stable through economic downturns.

Coca-Cola’s strong brand loyalty allowed it to grow organic revenue by 6% in the first quarter of the year, despite global unit case volume only increasing by 2%. The company’s ability to adjust prices to compensate for volume fluctuations is a testament to its brand loyalty. Coca-Cola remains focused on adapting to changing consumer preferences.

By trimming its portfolio, Coca-Cola has simplified supply chain management and distribution. This move has allowed the company to operate more efficiently and increase net income despite lower revenue compared to competitors like PepsiCo. Coca-Cola remains selective in acquiring brands to adapt to consumer preferences.

Investors looking for long-term stock options should consider companies that have the ability and willingness to adapt. Coca-Cola’s success with core products like Coca-Cola soda and Diet Coke drives its performance. The company’s focus on operational efficiency and brand adaptation ensures long-term success in a changing market.



Read more at Yahoo Finance: If I Had to Pick Just 1 Dividend Stock, This Is It