Coca-Cola raises dividend for 59th straight year

Coca-Cola Co. raised its quarterly dividend to 42 cents a share, up 2.4 percent from an already relatively high dividend of 41 cents to mark the 59th straight year of dividend increments.

Its shares went up nearly 1.3 percent to $50.77 at the close of trading on Feb. 18. The new quarterly dividend is payable on April 1 to stockholders of record on March 15.

Coca-Cola Co. made the increase a week after reporting that it calculated a potential liability of around $12 billion resulting from the application of the Internal Revenue Service (IRS)'s proposed transfer pricing methodology to foreign licensees through Dec. 31, 2020.

The company disclosed the potential tax hit on its fourth quarter and full-year 2020 results.

The Atlanta-based soft drink company noted that the US Tax Court "predominantly" sided with the IRS on the issue of transfer pricing or licensing of the intangible property of its brand names and formulas to its foreign licensees.

However, the company said it will ultimately prevail in the case based on the technical and legal merits of its position, its consultation with outside advisors, and the unconstitutionality of the IRS' retroactive imposition of tax liability.