I've just made a video to react to a question from @Meneervermogen, who is one of my first subscribers on Youtube. In this video I take a closer look at Coca-Cola $KO (-0,72%) — a longtime favorite for dividend investors thanks to its legendary streak of dividend increases and solid long-term performance.
But here's the twist: despite strong operating results, KO’s free cash flow dropped sharply in 2024 — down over 50% YoY. The main culprit? A massive $6 billion deposit to the IRS related to an ongoing tax dispute over offshore profits.
💬 In the video, I break down:
- Coca-Cola’s long-term stock and dividend history
- What’s causing the sudden drop in FCF
- How this affects their ability to *pay and raise dividends* going forward
- Whether this is a red flag or just short-term turbulence
📺 [Watch the video here] https://youtu.be/0hjcv6ATsUU
🔍 For context, even after the FCF hit, the adjusted numbers excluding the IRS deposit look strong — but it raises real questions about financial flexibility if the tax situation worsens.
Would love to hear your thoughts:
- Are you still bullish on KO as a dividend play?
- Do you think this tax issue could threaten future dividend growth?
- Is this a dip worth buying, or a warning sign?
