Exploring the Dividend Performance and Sustainability of Coca-Cola Europacific Partners PLC
Coca-Cola Europacific Partners PLC (CCEP, Financial) recently announced a dividend of $0.74 per share, payable on 2024-05-23, with the ex-dividend date set for 2024-05-09. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Coca-Cola Europacific Partners PLC's dividend performance and assess its sustainability.
What Does Coca-Cola Europacific Partners PLC Do?
Coca-Cola Europacific Partners PLC operates as the second-largest bottling partner in the Coca-Cola system by volume, trailing only behind Coca-Cola Femsa. It primarily serves developed Europe, which accounts for 80% of its 2023 revenue and EBIT, and Australasia, making up the remaining 20%. In 2023, CCEP announced its planned acquisition of Coca-Cola Beverages Philippines from TCCC. The company sold approximately 3.3 billion unit cases of beverages in 2023, representing about 9% of the global Coke system volume. TCCC holds a 19% equity stake in CCEP, while Olive Partners owns 36%, and the remaining 45% is publicly traded.
A Glimpse at Coca-Cola Europacific Partners PLC's Dividend History
Coca-Cola Europacific Partners PLC has upheld a reliable dividend payment record since 1987, with dividends currently distributed bi-annually. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Coca-Cola Europacific Partners PLC's Dividend Yield and Growth
As of today, Coca-Cola Europacific Partners PLC boasts a 12-month trailing dividend yield of 2.73% and a 12-month forward dividend yield of 2.82%, indicating anticipated increases in dividend payments over the next year. Over the past three years, the annual dividend growth rate was an impressive 29.40%. Based on Coca-Cola Europacific Partners PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Coca-Cola Europacific Partners PLC stock as of today is approximately 2.73%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, it's crucial to consider the company's payout ratio. As of 2023-12-31, Coca-Cola Europacific Partners PLC's dividend payout ratio stands at 0.50, suggesting a balanced approach to distributing earnings and retaining funds for future growth. The company's profitability rank is 8 out of 10, indicating strong earnings potential relative to its peers. This is supported by a decade of positive net income, further solidifying its robust profitability.
Growth Metrics: The Future Outlook
Coca-Cola Europacific Partners PLC's growth rank of 8 out of 10 suggests a promising growth trajectory. The company's revenue per share and 3-year revenue growth rate highlight a strong revenue model, with an average annual increase of 19.70%. This growth rate outperforms approximately 78.43% of global competitors. Furthermore, the 3-year EPS growth rate and 5-year EBITDA growth rate reinforce the company's capability to sustain dividends, outperforming 71.43% and 67.65% of global competitors, respectively.
Conclusion
Considering Coca-Cola Europacific Partners PLC's consistent dividend payments, robust dividend growth rate, balanced payout ratio, and strong profitability and growth metrics, the company presents a compelling case for dividend investors. The upcoming dividend payment, along with the historical performance, suggests that Coca-Cola Europacific Partners PLC remains a sustainable choice for those seeking reliable income streams. For further exploration of high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
