The Coca-Cola Company (KO) is one of the most recognizable brands in the world, with a history that stretches back more than a century. But while the company’s famous soda has been a fixture on store shelves for generations, its dividend history is a bit less well-known. In this blog post, we’ll take a closer look at the history of the Coca-Cola dividend, from its early days to the present.
Early Years: 1892-1920s
Coca-Cola was founded in 1886 by pharmacist John Pemberton, and the company’s first dividends were paid in 1892. At the time, Coca-Cola was a small regional brand, but it had already established a loyal following thanks to its unique blend of caffeine and sugar. The company paid out a quarterly dividend of 2 cents per share, and by the end of 1892, it had paid out a total of $14,600 in dividends.
Over the next few decades, Coca-Cola continued to grow and expand, and its dividends kept pace. By the 1920s, the company was paying out a quarterly dividend of 30 cents per share, and it had become one of the most popular beverages in the world.
The Post-War Boom: 1940s-1960s
The decades following World War II were a period of tremendous growth for Coca-Cola, and its dividend payouts reflected that. By the mid-1940s, the company was paying out a quarterly dividend of 40 cents per share, and by the end of the decade, that figure had risen to 50 cents per share. In the 1950s and 1960s, the company continued to grow, expanding its product line to include new beverages like Fanta and Sprite, and its dividends kept pace. By the end of the 1960s, Coca-Cola was paying out a quarterly dividend of 66 cents per share.
A Turbulent Time: 1970s-1980s
The 1970s and 1980s were a turbulent time for Coca-Cola, both in terms of its dividend payouts and its overall business strategy. In 1977, the company split its stock 2-for-1, effectively halving its dividend payout per share. In the early 1980s, the company faced a number of challenges, including increased competition from PepsiCo and changing consumer tastes. As a result, the company’s dividend payouts remained relatively stagnant, hovering around the 20-25 cents per share mark.
Revival and Growth: 1990s-2010s
The 1990s marked a period of revival and growth for Coca-Cola, as the company introduced new products like Diet Coke and expanded its presence in international markets. This growth was reflected in the company’s dividend payouts, which began to rise once again. By the end of the 1990s, Coca-Cola was paying out a quarterly dividend of 21 cents per share, and by the mid-2000s, that figure had risen to 33 cents per share.
In the years since, Coca-Cola’s dividend payouts have continued to rise, reflecting the company’s ongoing success and expansion. As of 2021, the company is paying out a quarterly dividend of 42 cents per share, and it has a long history of consistent dividend payments and increases.
The 10y dividend growth rate (as of October 2, 2023) is 5.34% (per Koyfin).
Conclusion
The history of the Coca-Cola dividend is a reflection of the company’s growth, challenges, and ultimate success over the past century. From its early days as a small regional brand to its current status as a global icon, Coca-Cola has consistently paid out dividends to its shareholders, demonstrating its commitment to returning value to investors.
With a long track record of consistent dividend payments and increases, the Coca-Cola Company has become a reliable choice for investors looking for stability and growth in their portfolio. As the company continues to adapt to changing market conditions and consumer preferences, it’s likely that its dividend payouts will remain a key part of its strategy for years to come.
