KO Analysis: 64 Years of Dividend Hikes and a 15% YTD Rally — Has Coca-Cola's Premium Gotten Too Rich?
The Coca-Cola Company (NYSE: KO) is trading at $78.91, just 1.9% below its 52-week high of $80.41 and up roughly 15% year-to-date in 2026. The beverage giant, with a market capitalization of $339.4 billion, continues to command one of the most recognizable brand portfolios on the planet — spanning Coca-Cola, Sprite, Fanta, Minute Maid, Costa Coffee, and more than 200 other brands sold in over 200 countries. The company just delivered its fiscal year 2025 results on February 10, and the board followed up on February 19 with its 64th consecutive annual dividend increase — raising the quarterly payout approximately 4% to $0.53 per share, or $2.12 annualized. That kind of consistency is why KO remains a cornerstone holding for income-focused portfolios and a fixture in Warren Buffett's Berkshire Hathaway. But the stock's sharp rally has compressed its value proposition considerably. Benzinga's value score dropped from 17.86 to just 3.28 in a single week following the Q4 earnings report. With trailing PE at nearly 26x, a tepid 2026 outlook, and free cash flow that declined significantly in 2025, the question facing investors is clear: Is Coca-Cola's bulletproof brand worth paying a premium for, or has the market gotten ahead of the fundamentals?