How Strong Are Coca-Cola's Dividends?
- By Sangara Narayanan
Coca-Cola Co. (KO), the world's largest non-alcoholic beverage maker, displays all the signs of a slow moving giant. Revenue growth in the last five years has been declining, operating margin has come down a bit, and soda consumption in the U.S. has fallen to 30-year lows, which has made the environment really difficult for the company to maneuver. PepsiCo (PEP), their rival, has also followed the same path and both companies have been finding it hard to move their sales needles for the past few years.
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3.3% is too attractive to let it pass. Despite the slowdown, the company has managed to keep its operating cash flow hovering around the $10.5 billion level for the last five years, while free cash flow has been holding steady around the $8 billion level.
