Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The board of directors of The Coca-Cola Company (KO - Analyst Report) recently announced a 10% increase in the cola giant’s annual dividend. With this, the company has increased its dividend for 51 consecutive years.

The quarterly dividend was increased from 25.5 cents to 28 cents per common share, equivalent to an annual dividend of $1.12 per share, up from $1.02 per share in 2012. The new dividend will yield 3.0% annually. The first quarterly payout will be on Apr 1, 2013, to shareowners of record as of Mar 15, 2013.

Coca Cola boasts a solid cash position, which is being used to return value to shareholders through higher dividends and regular buybacks. In 2012, the company paid $4.6 billion in dividends and $4.5 billion in share repurchases, thus returning $9.1 billion to shareholders.

In addition, the company announced some management changes including the appointment of Ahmet C. Bozer and Steven A. Cahillane as Executive Vice Presidents of the company. While Bozer currently serves as president of the International segment, Cahillane holds the same position at the Americas segment.

Rival PepsiCo, Inc. (PEP - Analyst Report) also announced a dividend increase recently at the fourth quarter conference call on Feb 14, 2013. The company increased its annual dividend rate by 5.6% to $2.27 per share from $2.15 per share. The increased dividend will be first paid in June this year.

Coca-Cola currently carries a Zacks Rank #3 (Hold). The company reported mixed fourth quarter results on Feb 12, 2013. While the maker of popular beverages like Coke, Thums Up and Sprite beat the Zacks Consensus Estimate for earnings by a penny, it marginally missed the revenue estimate.

PepsiCo, on the other hand, reported impressive fourth quarter results beating the Zacks Consensus Estimate for both revenue and earnings. Moreover, the company provided an impressive outlook for 2013, which was in line with long-term targets. PepsiCo also carries a Zacks Rank #3 (Hold).

Some of Coca-Cola’s bottling companies are currently doing well and have a bright outlook. These include Coca-Cola Hellenic Bottling Company S.A (CCH - Snapshot Report) – Zacks Rank #1 (Strong Buy)and Coca-Cola Enterprises Inc. (CCE - Analyst Report) - Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%