Coca-Cola To Pour Up A 5% Dividend Hike

Coca-Cola (NYSE: KO) is probably one of the more well-known dividend growth stocks out there. Still, it's not overly expensive at this level, presenting a decent entry point for conservative dividend growth investors.
Obviously, dividend growth investors want the dividend to grow at a pace that at least beats inflation. Coca-Cola has done that historically. What we will take a deeper look at in this article is whether it will do so this year as well.
KO data by YCharts
Considering we have been in a raging bull market, with the possible exception of Q4 2018, the stock price action of Coca-Cola over the last five years is not that impressive. The stock has climbed from $40 to $47.52 for a total rise of 19% or an average annual growth rate of your money of 3.5%. Adding in an approximate dividend yield of 3% over the period gives us a total return of 6.5%. Inflation beating, yes, but not stock market like returns.
Historical Dividend Growth Not many companies in the world can beat Coca-Cola when it comes to its dividend-raising streak. That said, the rate of growth has slowed down in recent years, giving investors some reason for concern.
KO Dividend data by YCharts
As is confirmed by the chart above, the dividend keeps on increasing reliably year after year, having been hiked by a full 28% since the 2014 level.
In 2015, the quarterly dividend was at $0.33. Ever since, the Board has hiked the dividend by $0.02 every year. This has turned into a fairly... Read more