I finally received my first dividend since starting my dividend growth investing experiment. On April 1st, 2014 the Coca Cola Company paid out a quarterly cash dividend of .305 cents per share owned. With my current investment of 40 shares, that came out to a dividend of $12.20.
That $12.20 then proceeded to be reinvested into KO by means of the automatic reinvesting dividends feature I opted into. Reinvesting this quarterly dividend allowed me to acquire an extra .315 of a share, bringing my total shares of KO to 40.315.
To be honest, it was a pretty good feeling checking my account that morning and seeing a notification letting me know that I received a deposit into my account. $12.20 would probably buy me a nice lunch, but it’s by no means a vast sum of money. However, relieving that dividend did bolster my resolve to carry out this experiment. It’s still really early, but so far dividend investing has proven to live up to it’s reputation of being a low stress investment strategy for retirement planning.
Full Disclosure : Long KO
Coca Cola Company (KO) Stock Evaluation
My plan is to reevaluate a company following the payment of a dividend. If the fundamentals or future trajectory has changed for the worse, I will consider selling or taking earnings by reducing my position. This should also help me intimately know the companies within my dividend portfolio and make plus expected value decisions.
Year to date, the share price of KO has dropped 7.84% and the dividend yield now stands at 3.20%. To be fair, this is a fairly respectable yield considering that PepsiCo, at the time of writing, has a dividend yield of 2.74%. KO also has over $20 billion in cash and other other short term investments to maintain or improve upon its 5 year dividend growth rate of 8.37%.
Knowing this, I remain confident in the future growth of my investment in KO and will continue to maintain a position.