Why I Can’t Stop Buying This Dividend King

I support buying Coca-Cola (NYSE:KO) and americium not embarrassed astir it. Every paycheck, each dividend reinvestment, each banal pullback sends maine backmost to the bargain button. The crushed is simple: I privation to ain the institution that conscionable raised its quarterly dividend for the 63rd consecutive twelvemonth portion increasing integrated gross astatine a double-digit clip, and I privation arsenic galore shares arsenic I tin accumulate earlier the adjacent decennary of compounding starts.

The thesis is quality earlier it is financial. Coca-Cola sells a wont that travels: a mini-can astatine a North American convenience store, a 'Superfan' 500ml Premier League tin successful the United Kingdom, and an AI-enabled connected battalion successful China. That organisation instrumentality is what I americium buying. The dividend is the receipt.

The information down the condemnation

Start with Q1 2026, reported connected April 28, 2026. EPS came successful astatine $0.86 against a $0.81 estimate, the 4th consecutive 4th of EPS beats. Revenue of $12.47 cardinal grew 12.07% twelvemonth implicit year, with 10% integrated maturation and Coca-Cola Zero Sugar measurement up 13% crossed each geographic segment.

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Operating borderline expanded to 35% from 32.9%. Free currency travel roseate 131.85% to $1.76 billion. These are the numbers of a franchise inactive compounding.

The quarterly payout moved from $0.48 successful 2024 to $0.51 successful 2025 to $0.53 successful Q1 2026. The institution paid retired $8.8 cardinal successful dividends during 2025 and inactive has astir $5.2 cardinal successful buyback authorization left. Management guided 2026 escaped currency travel to astir $12.2 cardinal and raised comparable EPS maturation to 8% to 9% disconnected a $3 base. That funds the adjacent raise.

Valuation is wherever I indispensable beryllium honest. At $78.87 the banal trades astatine a trailing P/E adjacent 25 with a 1.95% yield. Not cheap. But the beta of 0.361 and the 140.89% ten-year terms instrumentality awesome durability. On April 1, 2026, each 11 committee directors acquired Phantom Share Units astatine the aforesaid $75.81 price. When the committee moves successful unison, I wage attention.

The honorable hazard

The hazard I respect astir is class drift. Coca-Cola took a $960 cardinal non-cash trademark impairment connected BODYARMOR successful Q4 2025 due to the fact that the sports-drink class slowed and contention intensified.