Coca-Cola is set to announce its 64th dividend increase, with expectations for a substantial hike potentially in the double digits. The company has a streak of raising dividends for 63 years, but recent growth has barely kept up with inflation. However, improved earnings, operating margins, and share buybacks could pave the way for the biggest increase since 2007. Coca-Cola’s dividend growth history shows potential for a comeback, with strong earnings growth, operating margins, and share buybacks contributing to the possibility of a powerful dividend increase announcement.
In the past decade, Coca-Cola’s average dividend growth has been 3.94% annually, slightly outpacing inflation. However, historical data from the 1990s shows much faster dividend growth rates compared to recent years. With soaring earnings, improved operating margins, and significant share buybacks, Coca-Cola could be on track for a resurgence in dividend growth. Considerations before investing in Coca-Cola include the company’s recent financial performance and historical dividend growth rates.
Read more at Nasdaq: In Days, Coca-Cola Announces Its Next Dividend Increase: What Can Investors Expect?
