The Coca-Cola Company

KO
Consumer DefensiveDividend King
$81.48
2.53%Overvalued

The Coca-Cola Company (KO) is a Consumer Defensive company that currently yields 2.53% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $47.20 and the overvaluation threshold at $71.05. The Coca-Cola Company holds a quality score of 45/100 (Average), reflecting 64 consecutive years of dividend growth with a 65% payout ratio. The 5-year dividend CAGR stands at 4.5%.

KO Dividend Yield History — Weiss Valuation

Underval. $47.20Overval. $71.05

Distance to undervalued

Entry price is stretched

Needs 42.1% downside to reach the Weiss buy zone

Undervaluation starts near $47.20, where the annual dividend would imply roughly 4.36% yield. That is 1.84% above today's yield.

Buy-zone price

$47.20

Target yield

4.36%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

64Y

Long dividend history supports a deeper look.

Earnings payout

65%

Earnings coverage leaves room for noise.

Cash payout

N/A

Confirm cash conversion and one-off effects.

Dividend growth

4.5%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

The Coca-Cola Company is trading near its historical overvaluation band.

Current yield 2.5% vs historical max 4.4% (58% of maximum).

14 consecutive years without a dividend cut.

Reasonable payout ratio of 65%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 45/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

KO Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$264

Year 10 Income

$520

Yield on Cost

5.4%

Total Income

$3,763

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

KO Dividend Quality Score

Quality Score

45/ 100

Average

Payout Ratio12/25
Dividend Streak20/25
Growth (CAGR 5Y)8/20
Yield vs History5/15
FCF Coverage0/15

Key Metrics

Current Price$81.48
Annual Dividend$2.06
Current Yield2.53%
Yield — Max (10Y)4.37%
Yield — Min (10Y)2.97%
Undervalued Below$47.20
Overvalued Above$71.05
Payout Ratio64.78%
CAGR Dividend 5Y4.5%
CAGR Dividend 10Y4.4%
Years No Cut14y

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64
consecutive years of dividend growth