The board of directors of
The Coca-Cola Company
) recently announced a 9% increase in its quarterly dividend
marking the 52
consecutive quarterly dividend rate hike.
The quarterly dividend was increased from 28 cents to 30.5
cents per common share, equivalent to an annual dividend of $1.22
per share for fiscal 2014, up from $1.12 per share for fiscal
2013. The new dividend will yield 3.3% annually.
The first increased quarterly dividend will be paid on Apr 1,
2014 to shareholders of record as on Mar 14, 2014.
The cola giant's solid cash position allows it to regularly
return value to shareholders through dividends and buybacks. In
2013, the company paid dividends worth $5.0 billion and bought
back shares worth $4.8 billion, higher than an expected range of
The dividend increase came on the heels of a dull quarterly
result reported earlier this week. Coca-Cola missed the Zacks
Consensus Estimate for revenues and only managed to meet the
earnings expectation as the U.S. beverage sales slowed down.
Changing consumer preferences, increasing health consciousness,
rising obesity concerns and growing regulatory pressures are
affecting the sales of Coca-Cola's sparkling beverages likeCoke,
Fanta and Sprite in America. Last week,
Dr Pepper Snapple Group, Inc.
), also announced a dip in their American carbonated soft drink
Coca-Cola is trying to revive the beverage business through
increased marketing investments and package and product
innovation. Another step in the direction is its latest deal with
Green Mountain Coffee Roasters, Inc.
). Under the deal, Green Mountain will exclusively make Coca-Cola
branded pods for use on the upcoming Keurig Cold at-home beverage
system that will make cold beverages. The partnership deal will
allow Coca-Cola to tap the fast-growing cold beverage market and
give it the much-needed diversification from its traditional soft
Coca-Cola carries a Zacks Rank #4 (Sell).
DR PEPPER SNAPL (DPS): Free Stock Analysis
GREEN MTN COFFE (GMCR): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
To read this article on Zacks.com click here.