Coca-Cola's Dividend Yield Has Fallen to 2.4% From 2.9% at the Start of 2026. Is the Stock Still a Buy?

Coca-Cola raised its quarterly dividend by 4% in February 2026 to $0.53 per share, marking its 64th consecutive annual hike. Its business performance has been strong, with results that led management to increase its full-year outlook in late July. Shares have risen about 28% in 2026, nearing their 52-week high at $90 as of the writing.

However, the dividend yield has fallen from 2.9% at the start of the year to 2.4%. This is due to the stock price increasing faster than the dividend, which now consumes 64% of the company's trailing earnings per share. It would take five years of 4% annual dividend increases to restore the yield to 2.9% if the stock price remains at $90.

Coca-Cola's revenue rose 7% year-over-year in the second quarter of 2026 to $13.4 billion, with organic revenue growing 6%. Global unit case volume increased by 5%, and the comparable operating margin reached 35.6%. Management expects about 5% organic revenue growth for the full year, up from the previous forecast of 4% to 5%. The company anticipates producing around $12.4 billion in free cash flow for the year.

Despite the lower yield, Coca-Cola remains a dependable dividend payer. For income investors who already own the stock, the 28% gain and raised payout are a good year. However, new investors may want to wait for a better entry point or consider the higher-growth options identified by the Motley Fool Stock Advisor team, which was not Coca-Cola.