Introducing Valuation Models! 
Key Takeaways:
- Coca-Cola offers a 3.3% dividend yield, near the high end of its recent range and above its 5-year average of 3.06%.
- EPS is expected to grow at a 6.1% CAGR through 2027, supporting continued dividend growth of around 5.1% annually.
- Based on analysts’ consensus estimates, KO could reach $85 by 2027, implying a 23.3% total return, or 9% per year.
Coca-Cola is one of the world’s most iconic consumer brands, with a portfolio of over 500 beverages spanning soda, bottled water, juice, coffee, and ready-to-drink teas. It sells 2.2 billion servings per day across more than 200 countries, giving it unmatched global reach.
While the business is mature, analysts expect Coca-Cola to grow earnings per share at a 6.1% annual rate through 2027, with dividends rising 5.1% per year over the same period. Its wide moat, built on brand strength, global distribution, and pricing power, helps protect margins even during inflationary periods or soft consumer demand.
Shares currently trade around $69, slightly off their highs. But based on TIKR’s forecast, they could rise to $85 by 2027. That suggests a 23.3% total return, or around 9% per year, assuming margins improve and EPS grows at a steady 4.8% annually.
With a strong brand, stable dividend, and room for upside, Coca-Cola may be a low-risk opportunity hiding in plain sight.
Not Dirt Cheap, But Analysts See 23% Upside for Coca-Cola by 2027
Coca-Cola stock trades at 22.3x forward earnings, which is right in line with its 5-year historical average.
While not dramatically discounted, the current valuation still offers upside if earnings grow as expected and investor sentiment holds.
Based on analysts’ consensus estimates, TIKR’s model estimates that by 2027, the stock could reach $85 per share, up from $69 today.
That would deliver a 23.3% total return over the next 2.4 years, or about 9% annually, driven by consistent EPS growth and stable valuation multiples.
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Coca-Cola’s Higher-Than-Usual 3.3% Dividend Yield
Coca-Cola’s forward dividend yield has ticked higher to 3.3%, near the higher end of its 5-year range.
Analysts expect the dividend to grow at about 5% per year through 2027. That growth rate aligns with the company’s long-term earnings forecast, giving shareholders a rising stream of income without requiring aggressive payout expansion.
The combination of a solid starting yield and dependable growth makes KO’s dividend appealing for conservative investors who want reliable cash flow without sacrificing total return potential.
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Analysts Expect 6% EPS Growth & 5% Dividend Growth Going Forward
Coca-Cola is expected to earn $2.98 per share and pay out $2.03 in dividends in 2025, putting the payout ratio at a healthy 68%.
That’s within a sustainable range and reflects the company’s continued ability to fund dividends while investing in future growth.
By 2027, analysts expect Coca-Cola’s EPS to rise to $3.44, up from $2.88 in 2024. That’s a 6.1% compound annual growth rate (CAGR). The dividend is also projected to grow from $1.94 to $2.25 over the same period, a 5.1% CAGR.
This growth would keep the payout ratio steady around 65%, giving Coca-Cola room to extend its decades-long dividend growth streak while still investing in the business.
Earnings growth is expected to come from a combination of pricing strength, cost control, and portfolio expansion. Coca-Cola has leaned into high-margin products like Coca-Cola Zero Sugar and premium ready-to-drink coffees and teas. These categories are growing faster than traditional soda and contribute to higher average revenue per unit.
The company is also leveraging digital personalization and AI-powered supply chain tools to improve operational efficiency across its global network. Innovations like Freestyle fountain machines and refillable packaging formats also support long-term margin expansion.
With 63 consecutive years of dividend increases, Coca-Cola continues to reward shareholders while adapting to shifting consumer trends.
Its strong brand equity and global distribution give it a unique foundation for sustainable income growth well into the future.
See Coca-Cola’s full growth forecast and analyst estimates. (It’s free) >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
