My Current Effective Dividend Yield: Coca-Cola
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Coca-Cola is one of the better dividend growth stocks in my portfolio right now. When I purchased it in 2005 the dividend per share was $1.12 and today I am receiving $1.52 per share. As a result of this growth as well as reinvesting dividends received into more shares, I am no receiving a 3.56% yield on my investment. The important thing to remember with dividend stocks is that the power does not come from a high dividend yield, but rather the growth of that dividend over time. If Coca-Cola continues to increase its dividend then this picture is going to get better and better for me. Remember, I am doing a post similar to this for each of the stocks in my portfolio – links to each post as they come up will be placed in the sidebar on the right of your screen.
Business Summary:
The Company is manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world.
My Dividend Yield Data
| Coca-Cola | ||||
|---|---|---|---|---|
| Original Yield | ||||
| Date | Ticker | Initial Buy Price | Initial Div Per Year | Initial Yield |
| March 15, 2005 | KO | $42.33 | $1.12 | 2.65% |
| Current Yield | ||||
| Average Price Per Share | Shares | Current Div Per Share | Current Yield | Annual Div’s Rec’d |
| $42.70 | 32.1627 | $1.52 | 3.56% | $48.89 |
Table Explanation:
The table is dividend into two sections: Original Yield and Current Yield. Original yield presents the data from my initial purchase in the security and the resulting yield. The Current Yield is the yield I am receiving on my investment, given the growth in dividends as well as reinvested dividends. As I receive dividends they are reinvested into additional shares which is factored into this calculation. Essentially, I calculate the average share price for all shares and use this price to calculate the current yield (Current Yield = Current Dividend / Average Share Price).
