Coca-Cola dividend: payout and coverage
Coca-Cola's base-case dividend rises from $2.18 to $2.36 per share across the forecast. Its dividend exceeded reported free cash flow in 2025.
How much does Coca-Cola pay per share?
Dividends rise in the base case from $2.18 to $2.36 per share across the dates. The bear case freezes the current $2.12 annualized rate, while the bull case reaches $2.43. The base path follows five consecutive annual increases and guided free cash flow of $12.4 billion, but the freeze remains credible because dividends exceeded reported free cash flow in 2025.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 15,080 (13,970 / 15,645) | 15,772 (13,930 / 16,650) | 16,498 (13,890 / 17,758) |
| Shares (millions) | 4,297 (4,304 / 4,292) | 4,291 (4,306 / 4,281) | 4,285 (4,307 / 4,271) |
| Dividends per share | 2.18 (2.12 / 2.20) | 2.27 (2.12 / 2.31) | 2.36 (2.12 / 2.43) |
| Price to earnings | 25.00 (21.00 / 28.00) | 24.50 (19.00 / 28.00) | 24.00 (18.00 / 27.50) |
Is Coca-Cola's dividend covered by its cash?
Free cash flow is operating cash left after spending on property, plants and equipment. In 2025, dividends and buybacks exceeded that amount. The company could still pay them because it had cash from earlier years, asset sales and financing. That choice supports shareholders, but it leaves less internally generated cash for acquisitions, debt reduction or new factories.
In 2025, Coca-Cola generated $7,408 million from operations and spent $2,112 million on capital investment, leaving free cash flow of $5,296 million. Profit and cash differ because accounting recognizes earnings when rules require, while cash flow records when money moves.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 5,296 | 4,741 | 9,747 | 9,534 | 11,258 |
| − Dividends paid | 8,779 | 8,359 | 7,952 | 7,616 | 7,252 |
| − Share buybacks | 746 | 1,795 | 2,289 | 1,418 | 111 |
| = Free cash flow not paid out | 449 | 3,852 | |||
| Paid out, % of free cash flow | 179.9% | 214.2% | 105.1% | 94.8% | 65.4% |
What could change Coca-Cola's dividend?
Cash evidence would also matter. A larger tax burden or heavier investment would reduce buybacks and debt reduction, while stronger conversion would support both dividends and repurchases.
What is Coca-Cola's dividend yield today?
Coca-Cola’s current valuation pays a premium for dependable earnings, while its cash return looks modest.
| Today (Oct 11, 2026) | |
|---|---|
| Share price | 88.05 |
| P/E, last 12 months (calculated) | 26.4x |
| Free cash flow yield (calculated) | 1.4% |
| Dividend yield (calculated) | 2.4% |