Coca-Cola Boosts Dividend for 64 Straight Years, Eyes Growth in Premium Products

Coca-Cola has been a stalwart of dividend investing for decades, having raised its payout for 64 consecutive years. The beverage giant recently increased its quarterly dividend by 3.9%, bringing the annual payout to $2.12 per share. This marks the company's entry into the exclusive group of Dividend Kings, which require at least 50 consecutive years of dividend growth.

The dividend yield on Coca-Cola currently stands at 2.4%, but investors are not buying in solely for the income. Instead, they're drawn to the company's strong earnings growth and expanding margins. The business has been growing faster than the dividend, with second-quarter net revenue rising 7% to $13.38 billion.

Coca-Cola is shifting its focus towards premium products, such as Fairlife, a protein platform that gives the company exposure to the rapidly growing functional nutrition market. CEO Henrique Braun has emphasized the need for innovation and speed to market, acknowledging that the company needs to get closer to consumers.