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 dividend 4% to $2.12 annually (64th consecutive increase) and delivered strong business results, but the stock's 28% price surge in 2026 has compressed the dividend yield from 2.9% to 2.4%. While the company's fundamentals remain solid with 5% organic revenue growth guidance and strong margins, the stock now trades at a premium 26x forward P/E ratio. Income investors would need to wait roughly five years for dividend growth to restore the yield at current prices, or accept a potential 19% price decline for the yield to return to January levels.