Act Now: Coca-Cola Europacific Partners' (AMS:CCEP) Upcoming €1.23 Dividend Deadline Approaching
Saturday, Nov 9, 2024 3:10 am ET
Coca-Cola Europacific Partners (AMS:CCEP) is set to declare its second-half interim dividend of €1.23, marking a 7.1% increase from the previous year. With the ex-dividend date just four days away, investors have a narrow window to capitalize on this attractive opportunity. This article explores the factors driving CCEP's dividend growth, its competitive position, and the strategic value of investing in the company at this juncture.
CCEP's geographic diversification has been a significant driver of its dividend growth. The company's presence in Europe, Australia, and Southeast Asia (APS) has provided a robust balance, with APS, led by the Philippines, offsetting softer volumes in Europe. This diversification has allowed CCEP to maintain a steady dividend payout, with the full-year dividend per share expected to increase by 7.1% to €1.97.
Strategic acquisitions, such as Coca-Cola Beverages Philippines Inc, have also contributed to CCEP's dividend growth. The GBP1.8 billion acquisition in 2024 expanded CCEP's presence in the Australian, Pacific, and Indonesian markets, driving revenue growth of 55% in APS to EUR1.32 billion. This regional robustness, led by the Philippines, helped offset softer volumes in Europe, ultimately supporting a 7.1% increase in CCEP's full-year dividend per share to €1.97.
CCEP's focus on revenue growth management and pricing strategy has positively impacted its dividend payouts. In Q3 2024, the company reported a 2.4% increase in adjusted comparable revenue per unit case, driven by headline price increases and promotional optimization. This strategy, combined with solid volume growth, has enabled CCEP to declare a second-half interim dividend of €1.23, a 7.1% increase from the previous year. The company's ability to balance volume and price/mix, as demonstrated by its revised full-year revenue expectations, has contributed to its strong dividend growth and maintained an annualised total dividend payout ratio of approximately 50%.
CCEP's dividend growth compares favorably to its peers in the beverage industry. While PepsiCo (PEP) has a dividend yield of 2.7% and has increased its dividend for 49 consecutive years, and Coca-Cola (KO) has a dividend yield of 2.9% and has increased its dividend for 59 consecutive years, CCEP's 7.1% dividend increase in 2024 is competitive and demonstrates the company's strong financial performance.
In conclusion, CCEP's geographic diversification, strategic acquisitions, and effective revenue growth management strategies have driven its dividend growth and positioned the company as a strong investment opportunity. With the upcoming €1.23 dividend and a narrow window for investors to act, now is the time to consider adding CCEP to your portfolio.