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Things go better with Coke, as the company’s long-ago jingle proclaimed. Things are also going better for the beverage company’s stockholders, thanks to the news that its dividend will be increased.
Coca-Cola (ticker:KO) announced this week that it will increase its annual dividend from $1.68 to $1.76 per share, a nearly 5% increase. This is an increase of 44 cents a quarter from 42 cents.
This marks the 60ThThe company is a member the S&P 500 Dividend Aristocrats Index and has seen a consecutive increase in its annual dividend. These companies have paid out a greater dividend for at least 25 consecutive years.
Coca-Cola stock, which yields 2.8%, has a one-year return of about 28% as of the market’s close on Feb. 17, dividends included, ahead of the S&P 500 ‘s 13% result.
Elsewhere, Walmart , Humana , CSX were among the many U.S. businesses that announced dividend increases this week.
Walmart (WMT), announced that it will pay a $2.24 per share annual dividend, an increase of 4 cents or almost 2% over $2.20. The company will pay 56 cents per share on a quarterly basis. This is compared to 55 cents in the past.
The retailing behemoth’s stock has a one-year return of about minus 4%, and it yields 1.6%. This is the 49ThThe company has had consecutive dividend increases for the past year and is also a member the S&P 500 Dividend Aristocrats Index.
Humana (managed-care company) stated that it plans to increase its quarterly disbursement by 12.5% to 78.75 Cents from 70 Cents. The stock yields 0.7% and has an annual return of around 13%.
Freight transportation company CSX announced it would increase its quarterly dividend to 10c a share, from 9.33cs. That’s a 7% increase. This stock yields 1.1% and has an average one-year return around 18%.
Sherwin-Williams (SHW) has declared a quarterly dividend in the amount of 60 cents per share. This represents a 9% increase over 55 cents. The company produces a variety of paints and coatings. The stock yields 0.9% and has a 1-year return of around 12%.
Devon Energy (DVN), announced a $1.00 fourth-quarter dividend. It includes a fixed and variable payout. The fixed dividend is 16c per share, while the variable dividend is 8c per share.
Stocks with a yield of 3.6% have a one year return of approximately 170%.
Another energy company Pioneer Natural Resources (PXD) also declared a base-variable distribution. Pioneer stated that it will pay a dividend of $3.78 per share for the first quarter. $3 will be variable, and 78cs will be the base.
The stock yields 4.6% and has a 1 year return of approximately 75%.
Many technology companies have also announced increased dividends. Cisco Systems CSCO announced a quarterly disbursement in the amount of 38 cents per share. This was an increase of nearly 3% and a penny. The stock yields 2.7% and has a 1 year return of approximately 24%
Analog Devices (ADI) announced that it will increase its quarterly payout from 69 cents to 76c per share, an increase of 10%. The semiconductor company’s stock, which has returned about 2% over the past 12 months, yields 1.9%.
Alternative energy power and utility NextEra Energy (NEE) will increase its quarterly disbursement to 4 cents per share, to 42.5cs. This is an increase of just over 10%. The stock has a yield of 2% and a return on capital of minus 5% for one year.
Write to Lawrence C. Strauss at lawrence.strauss@barrons.com
