Thursday, February 21, 2013

Dividend Increase - Coca-Cola (KO)

This morning the Board of Directors of Coca-Cola (KO) announced a 9.8% increase in their quarterly dividend from $0.255 to $0.28 per share.  This marked the 51st consecutive annual dividend increase which is just amazing.  There's very few companies that have a 25 year record, let alone broken the 50 year mark.

The new dividend will be payable on April 1st to shareholders of record on March 15th.  It's great seeing one of your core holdings increase the dividend, and it's even better when it's a 10% increase.  Coca-Cola's BoD had slowed the dividend growth during the recession but I expect it to be closer to the 10% mark if we can get growth in the economy and avoid another recession.

The increase will provide an extra $7.87 in annual dividends before reinvestment or further increases.  My YOC for my position in KO increased from 3.02% to 3.32% and for the entire FI portfolio it increased from 2.79% to 2.81%.  The forward 12-month dividends for my FI portfolio now sits at $1,902.37.

11 comments:

  1. It's always exciting to hear about a dividend increase in a company you own. KO is one of my favorite core holdings and I'm loving the growth!

    ReplyDelete
    Replies
    1. Dan Mac,

      You definitely won't hear any complaints coming from me after a 10% increase. Now we just need a pullback to let us pick up some more shares.

      Thanks for stopping by!

      Delete
  2. I'm stoked since I've got 200 shares of KO, making it one of my major holdings.

    ReplyDelete
    Replies
    1. MyFIJ,

      Wish my position in KO was that large, but I only have about 78 shares. I still have an open put option that will hopefully see the shares put to me to add another 100 to my stake.

      Thanks for stopping by!

      Delete
  3. Pursuit,

    Gotta love KO. I knew this was coming, so I decided to add to my position a little while back before the raise.

    WMT also had a huge raise today. I just love raises! Keeps me from being disappointed when I don't get one at my day job. :)

    Best wishes.

    ReplyDelete
    Replies
    1. DM,

      I wanted to pick some up late last week but missed the dip they had and then was busy with work and spending time with the wife so it didn't happen. It's a shame too because getting in before this increase would have been great.

      One day you won't even be worrying about your day job. There's not too many places where you can get a pretty consistent 7% raise year in and year out. Got to love DGI!

      Thanks for stopping by!

      Delete
  4. I love KO, I just wish it would drop in price so I can buy some shares! =)

    ReplyDelete
    Replies
    1. Marvin,

      You and me both. I'm hoping that my open put option gets exercised so I can add to my position that way.

      Thanks for stopping by!

      Delete
  5. Yes this is excellent news! Did you see what WMT did? Holy smokes...

    ReplyDelete
    Replies
    1. CI,

      The 10% was nice from KO, I was expecting something around the 8% mark, so more is better. WMT blew KO's solid increase out of the water though. I picked up a little bit of WMT back during the Mexico bribery scandal but since then it took off and hasn't really given any opportunities to buy in really cheap.

      Thanks for stopping by!

      Delete
  6. This is a good post. This post give truly quality information.I’m definitely going to look into it.Really very useful tips are provided here.thank you so much.Keep up the good works.

    ReplyDelete