Warren Buffett’s long-term bet on Coca-Cola (NYSE: KO) continues to pay off, with Berkshire Hathaway (NYSE: BRK.A, BRK.B) set to receive over $200 million in dividends at the start of July.
Buffett owns 400 million Coca-Cola shares, which will earn him $204 million on July 1, based on the upcoming $0.51 per-share quarterly dividend.
The legendary investor has held this position for over 25 years without selling a single share, an enduring vote of confidence in the beverage giant.
Meanwhile, Coca-Cola shares have moved largely in line with the broader market, ending the most recent session up less than 1% at $72.
Should you buy KO stock?
One of the key attractions for investors remains Coca-Cola’s consistent dividend performance. For instance, in February, the company raised its dividend by 5.2% to an annualized $2.04 per share, marking its 63rd consecutive yearly increase.
With 2024 earnings per share at $2.88 and a projected 2025 EPS of up to $2.95, the dividend payout ratio stands at a healthy and sustainable 69%.
Beyond its dependable dividend, Coca-Cola offers solid growth potential, supported by its global brand recognition and strong fundamentals. In February, the company projected 2025 organic revenue growth of 5% to 6% and EPS growth of 2% to 3%, a more optimistic outlook than peers such as PepsiCo, which has struggled with weaker consumer demand.
More recently, Coca-Cola’s first-quarter 2025 results further reinforced that confidence. Organic revenue rose 6%, landing at the top of its forecast range, while EPS increased 1% year-over-year despite a 5% currency headwind.
The company reaffirmed its full-year guidance, signaling resilience in the face of broader market uncertainty.
With a dividend yield around 2.8%, Coca-Cola remains especially attractive to income-focused investors, particularly retirees.
All in all, for those seeking a reliable, income-generating stock with global reach and long-term staying power, Coca-Cola remains as compelling a pick today as it was when Buffett first bought in.
Featured image via Shutterstock
