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Stock of the Day

Every day we spotlight one stock or ETF worth watching — with real metrics, Graham Number valuation, and honest analysis. No hype, no pump-and-dump. Just value investing fundamentals.

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Thursday, March 5, 2026

Coca-Cola: 64 Years of Dividend Growth at a Reasonable Price

KO — $78.10Fair Value
Price
$78.10
P/E Ratio
25.7
Moderate
Dividend Yield
2.67%
Above S&P avg
Graham Value
$81.50
4% margin of safety
EPS:$3.04
Dividend Growth:64 years
Payout Ratio:67.8%

Coca-Cola just reported Q4 2025 results that narrowly beat earnings expectations, with diluted EPS of $3.04 for the full year — a 23.6% increase over the prior year. While revenue growth was modest at 1.9%, the company's operating margin expanded to 28.7%, demonstrating the pricing power that has made KO a cornerstone of value portfolios for decades.

What makes Coca-Cola compelling right now is the combination of its 64 consecutive years of dividend increases and the recent announcement of a dividend raise to $0.53 per quarter (up from $0.51), bringing the forward yield to 2.67%. At a P/E of around 25.7, KO is trading below its 5-year average multiple, which is notable for a Dividend King with this level of consistency. The company generated $5.3 billion in free cash flow in FY2025, comfortably covering its dividend obligations.

For value investors, the Graham Number for KO sits around $81.50, suggesting the stock may be modestly undervalued at current levels. With Dividend Aristocrats outperforming the S&P 500 by a wide margin YTD in 2026 (NOBL up 9.39% vs SPY's 1.08%), defensive dividend growers like Coca-Cola are exactly the kind of stock that can anchor a portfolio in uncertain markets.

View Full KO Analysis →P/E AnalyzerDividend CalculatorStock Screener

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Stock of the Day is for educational purposes only and does not constitute financial advice. Always do your own research before investing. Past performance does not guarantee future results.