Coca-Cola Dividend: KO Yield, Growth History & Income Guide (2026)

When Warren Buffett wants to explain dividend investing, he talks about one stock: Coca-Cola. Berkshire Hathaway bought KO in 1988 at a split-adjusted cost of about $3.25 per share. Today, Buffett collects $2.12 per share per year — a yield on cost of over 65%. He earns back his entire original investment in dividends every 18 months.

That's not a typo. That's the power of a Dividend King with 62+ consecutive years of increases.

Coca-Cola isn't the fastest-growing dividend. It's not the highest-yielding. But it is arguably the most reliable dividend stock on the planet — a company that has raised its payout through the Cold War, the dot-com crash, the 2008 financial crisis, a global pandemic, and every recession in between. No cuts. No freezes. Just steady, compounding growth for over six decades.

In this guide, we'll break down Coca-Cola's full dividend history, recent payment schedule, how much income KO generates at every portfolio size, why the dividend is rock-solid, and how to use yield on cost to build life-changing passive income over time.

Coca-Cola has increased its dividend every single year since 1963. That's 62 consecutive annual raises — comfortably earning it the title of Dividend King (50+ years required). Only a handful of companies in history have matched this record.

The growth rate has moderated from the double-digit pace of the 1990s and 2000s, but KO still consistently delivers 4-5% annual increases — roughly double the rate of inflation. That's steady, predictable income growth you can build a retirement around.

The most recent increase came in February 2026, when Coca-Cola raised its quarterly payout from $0.51 to $0.53 — a 3.9% jump. That's the 62nd consecutive annual increase, and CEO James Quincey reiterated the company's commitment to returning cash to shareholders. At the current trajectory, KO's annual dividend should cross the $2.20 mark by 2027.

Coca-Cola pays dividends quarterly, with payments typically landing in April, July, October, and December. The company has one of the most predictable payment calendars of any stock — making it a favorite for income planners.

Coca-Cola typically announces its annual dividend increase in February, with the new rate taking effect for the Q1 payment. Record dates are generally set in March, June, September, and December, with payment dates about 2 weeks later. The schedule is clockwork-consistent — you can set your calendar by it.

Coca-Cola's 2.68% yield means it generates meaningful income even in smaller portfolios — significantly more than growth-focused dividend payers like Microsoft or Apple. Here's what KO pays at various investment sizes at today's $79.03 share price:

A $50,000 position in KO generates over $1,300 per year in dividends — and that number goes up every February when Coca-Cola announces its next raise. At ~4.8% annual dividend growth, that $1,340 becomes $2,100 in 10 years and $3,400 in 20 years without investing another dollar.

KO sits in the sweet spot for dividend investors building toward a $500/month income portfolio: the yield is high enough to generate real cash flow today, while the growth rate keeps your income ahead of inflation year after year.

A 62-year dividend streak doesn't happen by accident. Coca-Cola's business model is uniquely suited to support decades of uninterrupted payments — and the financial metrics confirm the dividend remains on solid ground.

Here's why the dividend is safe:

1. Earnings comfortably cover the payout. With an earnings yield of 3.96% and a dividend yield of 2.68%, Coca-Cola pays out roughly 68% of its earnings as dividends. That's higher than a tech company, but perfectly normal for a mature consumer staples business — and well within sustainable territory.
2. The business is recession-proof. People don't stop drinking Coke in recessions. Coca-Cola sells 2.2 billion servings per day across 200+ countries. Revenue barely dipped during 2008 and actually grew during COVID. This kind of demand stability is what makes a 62-year streak possible.
3. Massive global brand moat. Coca-Cola owns 5 of the world's top 10 non-alcoholic beverage brands. The brand portfolio — Coca-Cola, Sprite, Fanta, Dasani, Minute Maid, Costa Coffee, and more — generates pricing power that protects margins even during inflationary periods.
4. Asset-light franchise model. KO doesn't bottle most of its own drinks — it sells concentrate to bottling partners. This capital-light model means high margins (ROE of 42.77%) and strong free cash flow generation.

The one metric to watch is the net debt/EBITDA ratio of 2.21x. That's manageable, but higher than Procter & Gamble (1.4x) or Johnson & Johnson (1.1x). Coca-Cola carries meaningful debt, though its cash flow generation easily services it. The current ratio of 1.03x is tight, but KO's business model doesn't require large cash reserves given the predictability of its revenue streams.

This is where Coca-Cola's story gets truly compelling. Yield on cost measures the dividend you receive today against the price you originally paid — not today's market price. With 62 years of consecutive increases, long-term KO holders are earning jaw-dropping yields on their cost basis.

Let's look at a realistic example. KO traded around $42 per share in early 2016. At that time, the annual dividend was $1.40 — a yield of about 3.3%. Here's what happened over the next decade:

A 5% yield on cost in 10 years from a 3.3% starting yield is solid. But the real magic of Coca-Cola is what happens over decades. Warren Buffett's famous KO position, held since 1988, now earns a yield on cost exceeding 65%. That's the dividend snowball at its most extreme.

If you bought KO today at $79.03 and the ~4.8% dividend CAGR continues, here's what your yield on cost trajectory looks like:

The patience premium: At ~4.8% annual growth, KO's dividend doubles every ~15 years. A 30-year-old investor buying KO today at a 2.68% yield would be earning ~9.8% on their original cost by age 60 — without adding a single dollar. That's the definition of a set-and-forget dividend stock.

Coca-Cola doesn't exist in a vacuum. Let's see how KO stacks up against other blue-chip dividend stalwarts that income investors often consider:

A few takeaways from this comparison:

• KO has the lowest beta (0.36) of any major Dividend King — making it the least volatile option for conservative income investors. When markets crash, KO holds up better than almost anything else in your portfolio.
• PepsiCo offers higher yield AND faster growth. PEP's ~3.6% yield and ~7% CAGR make it objectively more attractive on paper. The trade-off is slightly higher volatility and a shorter (though still impressive) 52-year streak.
• KO wins on brand certainty. Coca-Cola is the single most recognized brand in the world. PEP diversifies into snacks (Frito-Lay), MCD faces fast-food competition, but Coca-Cola's core soda and beverage business is essentially unassailable.

The most common pairing among dividend investors is KO + PEP together — giving you exposure to the two dominant beverage companies with a combined 114 years of consecutive increases. Add in JEPI for monthly income and a dividend ETF like SCHD or VIG for diversification, and you have a rock-solid income foundation.

KO is one of the most widely recommended dividend stocks — but it's not the right fit for every investor. Here's who benefits most:

The ideal role for KO in a dividend portfolio is as a cornerstone holding — the unshakeable foundation that keeps paying no matter what. Pair it with faster growers (MSFT, SCHD), higher yielders (JEPI, O), and a few Aristocrats (PG, JNJ) to build a well-rounded income portfolio.

As Warren Buffett himself has demonstrated, sometimes the best dividend strategy is simply buying great businesses at reasonable prices and holding them forever. After 37 years, his Coca-Cola position has become one of the most profitable investments in history — not because of the price appreciation, but because of the dividend snowball that never stops growing.

Whether you own 10 shares or 10,000, tracking your KO dividends over time is how you watch the Dividend King compound in real time. Every annual raise adds to the snowball. Every reinvested payment buys more shares. And seeing your yield on cost climb year after year keeps you committed to the long-term plan.

DripWealth tracks every payment, predicts your future income, and shows you the big picture. Add KO to your portfolio and let the app calculate your projected income, dividend score, and growth trajectory automatically.