Time for Coke to Up Its Dividend?

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The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin asks whether quintessential Dow component Coca-Cola should raise its dividend. At 2.75%, it trails the broader Dow Jones index and its closest peer, PepsiCo. When looking at industry norms for payout ratios and yields, it looks like Coca-Cola may be being a little stingy. While it's hard to fault its capital allocation in the past, and it has certainly made up for it with share-price appreciation, Austin thinks there is room for improvement.

That's just one reason PepsiCo was selected over Coca-Cola as a way to "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can read about the other eight incredible yielders that made the cut. Just click here for the free report.

At the time this article was published Austin Smithowns shares of Coca-Cola and PepsiCo. The Motley Fool owns shares of Coca-Cola and PepsiCo.Motley Fool newsletter services recommendDiageo plc (ADR), Monster Beverage, PepsiCo, and Coca-Cola. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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