KO
📈 Coca-Cola showcases remarkable dividend consistency, having increased its dividend payouts for 62 consecutive years, demonstrating long-term financial health and shareholder commitment.
💰 Illustrating the power of long-term dividend growth, Warren Buffett’s investment highlights an exceptional yield-on-cost exceeding 81%, turning his initial investment into a significant passive income stream.
📊 With a payout ratio of approximately 67% and consistent gross profit growth, Coca-Cola demonstrates a sustainable model for distributing earnings while reinvesting for future stability.
@ElClubDeInversion:
“The company Coca-Cola has been distributing dividends for more than 60 years, specifically 62 as you see on screen. And not only that, but it has been increasing the dividend during all these years. That’s why it says consecutive years of dividend payments, the second row, 62. And the first row, years of dividend growth, also 62, because since the beginning, it hasn’t stopped increasing its dividend over time. We see it’s much better than the average of its sector. We see the graph, you see it comes in blocks of four. Why? Because this is a company that distributes quarterly, so it makes four equal distributions, and the following year it increases a bit. Four equal distributions and a bit more, four and it goes up. That’s how the graph is read. Its payout ratio is 67%. This means that if it has a profit of 100, it decides to distribute 67, and the other 32.64% it will reinvest in growth, expansion, whatever. So it’s a very reasonable ratio. We see here the gross profit, which is the gross benefit, we see how it increases year after year, right? And that’s what we want from companies. We don’t want a company to suddenly grow a lot one year and then the next year it drops. No, we want little by little, little by little, for it to grow consistently.”
Watch the exact part of the video where @ElClubDeInversion talks about Coca-Cola here:
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