Coca-Cola Consolidated is making a major shift in how it treats its shareholders. The company is boosting its quarterly dividend fivefold, from 50 cents to $2.50, starting with the November payout.
Separately, the company is planning a $1 billion share repurchase plan, at management’s discretion.
“The progress we’ve made improving our profitability and strengthening our balance sheet allows us to reinvest in our business and our teammates while taking steps to build long-term value for our stockholders,” CEO J. Frank Harrison III said in a release. The move aligns with the company’s “commitment to return cash to our stockholders over time.”
Last November, Harrison noted that Coca-Cola Consolidated’s cash exceeded its outstanding debt balance for the first time in nearly 40 years. That reflects the strong cash flow and profitability at the company, which sells more than 300 brands and operates in 14 states and the District of Columbia.
Coca-Cola Consolidated had paid a 25 cent quarterly dividend since 1994 before doubling the payout in 2023. It also paid special dividends of $3.50 per share in 2023 and $16.50 per share in 2024.
While publicly traded, Coca-Cola Consolidated has been controlled by the Harrison family for generations. The company reported net income of $408 million in 2023 with revenue of $6.6 billion.
Shares have gained 255% in the past five years, the third-best performance among North Carolina-based public companies, behind First Citizens Bancshares and Old Dominion Freight. The company has a market cap of $11.3 billion.
Atlanta-based Coca-Cola, the giant company that supplies its affiliated bottlers such as Coca-Cola Consolidated, has had a 50% return over the five-year period, including dividends.