A few days ago Coca-Cola (KO) announced a quarterly dividend raise from $0,39 to $0,40. This raise adds sightly more than € 1 to my annual dividend income.
Obviously this raise is not what I expect from my companies in general, but for KO I expected it a little but. Their payout ratio is rather high and earnings growth has been a little muted in the past years. I am an owner of KO since July 2013. I purchased shares for a price of around $40. Currently shares are worth over $45, so in price appreciation alone this position has netted me just over 2% per year. However, if you add in the dividend along the ride, the total return is bumped up to almost 6%. This is not really what I would like to see . Compared to other companies and indices KO underperformed during my holding period.
So far I received 9 dividend raises in 2019. These raises combined have added over € 21 to my forward annual dividend income. Of course I expect more raises during the rest of the year. I'll keep you updated!
Did you like the dividend raise of KO? Do you consider selling because of the low dividend growth rate?
Obviously this raise is not what I expect from my companies in general, but for KO I expected it a little but. Their payout ratio is rather high and earnings growth has been a little muted in the past years. I am an owner of KO since July 2013. I purchased shares for a price of around $40. Currently shares are worth over $45, so in price appreciation alone this position has netted me just over 2% per year. However, if you add in the dividend along the ride, the total return is bumped up to almost 6%. This is not really what I would like to see . Compared to other companies and indices KO underperformed during my holding period.
So far I received 9 dividend raises in 2019. These raises combined have added over € 21 to my forward annual dividend income. Of course I expect more raises during the rest of the year. I'll keep you updated!
Did you like the dividend raise of KO? Do you consider selling because of the low dividend growth rate?
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