Yes, Coca-Cola pays dividends every quarter

Coca-Cola has paid dividends to shareholders every quarter since 1920. The company is one of the longest-running dividend payers in the United States. If you own shares of Coca-Cola stock, you receive a payment four times per year, usually in March, June, September, and December.

The dividend amount changes periodically. Coca-Cola's board of directors votes to set the quarterly payment, and the company has raised its dividend in most years over the past several decades. The exact amount you receive depends on how many shares you own and when you bought them.

Dividends are paid to shareholders who own the stock on the record date, which is the date the company uses to determine who gets paid. If you buy shares after the record date, you will not receive that quarter's dividend—you will receive the next one instead.

Key Takeaways

  • Coca-Cola pays dividends four times per year, with payments typically arriving in March, June, September, and December.
  • The quarterly dividend amount is set by Coca-Cola's board of directors and has increased in most years since 1920.
  • You must own shares before the record date to receive that quarter's payment; buying after the record date means you receive the next dividend instead.
  • The total annual dividend you receive depends on the number of shares you own multiplied by the per-share payment amount.
  • Dividend payments are made to your brokerage account if you hold shares through a broker, or directly to you if you hold shares in your own name.

How to find Coca-Cola's current dividend amount

Coca-Cola publishes its dividend information on its investor relations website. You can find the current quarterly payment per share, the record dates, and the payment dates for upcoming dividends. The company also announces any changes to the dividend when the board votes to raise or adjust it.

Your brokerage account will also show you the dividend amount if you hold Coca-Cola shares. Most brokers display the annual dividend yield (the annual payment divided by the stock price) alongside the stock quote. This helps you see what percentage return you are earning from dividends alone, separate from any gain or loss in the stock price itself.

When you receive your dividend payment

Coca-Cola follows a standard dividend calendar. The company announces the dividend, sets a record date (the cutoff for who receives it), and then pays shareholders on the payment date. Between the announcement and the payment date, there is usually a gap of several weeks.

If you hold shares through a brokerage, the dividend is deposited into your account on the payment date. If you hold shares directly through Coca-Cola's transfer agent, you can choose to receive the payment by check or have it deposited to your bank account. Some shareholders also enroll in a dividend reinvestment plan (DRIP), which automatically buys new shares with the dividend payment instead of sending you cash.

Dividend reinvestment plans (DRIP)

A dividend reinvestment plan allows you to automatically use your dividend payment to buy more Coca-Cola shares. Instead of receiving cash, the dividend amount is used to purchase fractional shares at regular intervals. Over time, this can increase your total share count without you having to make additional purchases yourself.

Coca-Cola offers a DRIP through its transfer agent. If you hold shares directly (not through a broker), you can enroll in the plan. Some brokerages also offer DRIP options for their customers. The advantage is that you benefit from compounding—your dividends earn dividends of their own. The trade-off is that you do not receive cash, so DRIP works best if you do not need the money immediately.

Taxes on Coca-Cola dividends

Dividends from Coca-Cola are taxable income. The tax rate depends on how long you have owned the shares. If you have held Coca-Cola stock for more than 60 days around the dividend payment date, the dividend is taxed as a may have access to dividend, which means it is taxed at a lower rate than ordinary income (0%, 15%, or 20%, depending on your income level). If you have owned the shares for 60 days or fewer, the dividend is taxed as ordinary income at your regular tax rate.

Your brokerage or transfer agent will send you a Form 1099-DIV each January showing the total dividends you received in the previous year. You report this amount on your tax return. If you reinvest dividends through a DRIP, you still owe taxes on the dividend amount, even though you did not receive cash.

What affects Coca-Cola's dividend payments

Coca-Cola's board of directors decides whether to raise, maintain, or lower the dividend based on the company's earnings, cash flow, and business outlook. In most years, the company raises the dividend by a small percentage. However, the dividend can be cut if the company faces financial difficulty or if the board decides to redirect cash to other priorities like debt reduction or share buybacks.

The stock price also affects your dividend yield. If Coca-Cola's stock price falls, the same dividend payment represents a higher yield on your investment. If the stock price rises, the yield falls. This is why some investors buy dividend stocks when prices drop—they lock in a higher yield.

Frequently Asked Questions

How much is Coca-Cola's dividend per share right now?

Coca-Cola's quarterly dividend amount changes periodically and varies based on the board's decision. Check Coca-Cola's investor relations website or your brokerage account for the current per-share amount. The company typically announces dividend changes when they occur.

Do I have to hold Coca-Cola stock for a certain amount of time to receive dividends?

You must own the stock on or before the record date to receive that quarter's dividend. There is no minimum holding period after that. You can sell the shares the day after the record date and still receive the dividend payment.

What happens to my dividends if I sell my Coca-Cola shares?

If you sell your shares before the record date, you do not receive that quarter's dividend. If you sell after the record date, you receive the dividend even though you no longer own the stock. The payment goes to whoever owned the shares on the record date.

Can I receive Coca-Cola dividends if I own shares in a retirement account?

Yes. If you own Coca-Cola shares in an IRA, 401(k), or other retirement account, you receive dividends just as you would in a regular brokerage account. The dividends are not taxed when you receive them; instead, you pay taxes when you withdraw money from the retirement account.

What is the difference between dividend yield and dividend amount?

The dividend amount is the dollar payment per share (for example, $0.44 per share per quarter). The dividend yield is that annual payment divided by the current stock price, expressed as a percentage. Yield changes when the stock price changes, even if the dividend amount stays the same.