Coca-Cola Remains a Dividend Favorite

Fads come and go, but two things have remained true for decades: the world loves to drink Coke, and investors love to get dividends. Shareholders in Coca-Cola (NYSE: KO ) have gotten the best of both worlds, as the soft-drink giant has been a member of the prestigious Dividend Aristocrats for a long time. Recently, though, Coca-Cola has faced some unusual headwinds to its core business.

The main problem that Coca-Cola has faced lately has been that its revenue and volume growth have all but evaporated lately. In its most recent quarter, for instance, Coca-Cola reported growth in global sales volume of just 1%, with revenue actually falling by 3% overall. North American results were particularly problematic, with soda sales declining by 4%. Europe was similarly weak, with a 4% volume decline stemming from poor economic conditions. Yet, perhaps even more surprising was that some key emerging markets also failed to provide Coca-Cola with much growth. Both India and Mexico posted volume gains of just 1%, and China and Brazil reported flat volumes.

Source: Motley Fool

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