Buffett’s Coca-Cola Dividend: $816M and Counting!

Buffett’s Coca-Cola Dividend: $816M and Counting!

Snack-Sized Version:

Warren Buffett’s Berkshire Hathaway holds 400 million shares of Coca-Cola, generating $816 million in annual dividends. Coca-Cola, known for its “dividend king” status, has raised its dividend for 63 consecutive years. Berkshire’s stake in Coca-Cola pays $204 million quarterly, or $2.23 million daily, based on its current dividend rate. Coca-Cola’s brand portfolio and consistent sales growth, especially its $47 billion revenue in 2024, contribute to its steady dividend increases. Berkshire’s investment, originally valued at $1.3 billion, has paid off handsomely for Buffett, making it a key driver of income.

Read the Full Meal:

Warren Buffett’s Berkshire Hathaway has long been a significant shareholder in Coca-Cola, owning 400 million shares, valued at approximately $28.1 billion. The company’s dividend payments have been a reliable source of income, with Coca-Cola currently paying an annual dividend of $2.04 per share. This has resulted in Berkshire Hathaway earning $816 million annually, or $204 million per quarter, from its Coca-Cola investment.

Coca-Cola’s reputation as a “dividend king,” a title given to companies that have raised their dividends for at least 50 consecutive years, highlights its financial stability and consistent growth. Buffett’s investment in the company began in 1988, and since then, Coca-Cola’s stock price has increased nearly 3,000%, with dividends reinvested leading to a total return of over 7,000%. This impressive growth is a testament to the company’s strong management and iconic brand portfolio, which includes over 200 brands worldwide, such as Sprite, Diet Coke, and Powerade.

Coca-Cola’s dividend increases are an essential part of its appeal to long-term investors, with its most recent dividend hike being 5.2%. The company’s consistent dividend payments and ability to raise them each year have made it a cornerstone of Buffett’s investment philosophy. Berkshire Hathaway’s stake in Coca-Cola continues to pay off, contributing significantly to the company’s overall portfolio income.

For individual investors, Coca-Cola also offers a compelling investment opportunity. A $1,000 investment in Coca-Cola, or approximately 14 shares at a market price of $70, would generate $28.56 annually in dividends. If dividends were reinvested, this return could compound over time, amplifying the benefits for long-term shareholders. Despite being a massive player in the global market, Coca-Cola remains an accessible investment for those looking to benefit from its steady growth and dividend payouts.

Author

Ed Don

Ed is a writer who is passionate about all financial topics. After starting out in the​ traditional long-form style of online article writing, Ed shifted focus and began contributing snack-sized articles. After the first few articles, Ed's excitement for shorter-length content grew. Today, he's a daily contributor on InvestingSnacks.com.