- Yields in excess of 2.5 percent
- Uninterrupted payment histories of over one hundred years
- Increased dividend payments every year, consecutively, over a period of decades (with the exception of WWI and WWII restrictions).
General Electric (GE) and Clorox (CLX) would have made the cut had they been able to keep up their consecutive dividend growth, and, in the case of GE, not cut the dividend. I examine the five stocks’ valuations to see how they hold up to their competitors:
The Coca-Cola Company (KO) – This global beverage leader is currently trading near $68 a share. It has ranged from $60.30 to $71.77 over the past 52 weeks. Its dividend yield is 2.8 percent or $1.88. Earnings per share is $5.44, and price to earnings ratio is 12.60. Market capitalization is $155.59 billion.
KO’s payout ratio is 34 percent. It is included on the list of “U.S. Dividend Champions” having increased its dividend every year for the past 49 years. Its share price has performed moderately. A $1,000 purchase made ten years ago would have purchased 20.35 shares for $49.14. The investment would have increased 39.91 percent to $1399.06 today. $1,000 purchased 20 years ago would have increased 333.73 percent to $4337.34, adjusted for a 4:1 split factor.
KO reported strong third quarter results. Worldwide volume growth was 5 percent for the quarter. Net revenue was up 45 percent, and operating income was up 17 percent.