How Safe is Coca-Cola's Dividend?
As far as dividends go, there aren't many more dependable payouts than Coca-Cola's (NYSE: KO). The beverage giant has been boosting its dividend for 61 consecutive years, allowing it to easily surpass the requirement for membership in the exclusive club of Dividend Kings.
That impressive track record is an excellent reason for investors to expect continued annual hikes ahead for this payout. But just how safe is Coke's dividend? Let's take a closer look.
Coke's dividend is ultimately supported by its business, which enjoys one of the strongest competitive moats on the planet. The company sells over 2 billion of the 64 billion servings of drinks consumed around the world each day. It owns five of the top six global soft drink brands, including Coca-Cola, Sprite, and Fanta. And Coke spends billions each year on marketing to support those leadership positions. All of this is to say that from a qualitative standpoint, Coke seems likely to continue growing its sales and annual earnings into the foreseeable future .
Source Fool.com
