Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) is set for another massive payday. With 400 million shares of Coca-Cola (NYSE: KO) in its portfolio, the Omaha-based conglomerate will receive a $204 million dividend check on December 15, following the beverage giant’s latest quarterly payout declaration of $0.51 per share.
On an annualized basis, Berkshire Hathaway now earns more than $800 million a year from its KO stake, a return that far eclipses the company’s original cost basis.
Coca-Cola stock performance
Coca-Cola shares closed Thursday at $67.59, up $0.51 (+0.76%) on the day and showing a 9.3% gain year-to-date. At current levels, the beverage giant carries a $288.7 billion market cap and maintains gross profit margins above 61%, placing it among the most profitable consumer staples names.
For Buffett, who first began buying Coca-Cola stock in the late 1980s, the dividend income alone underscores the enduring strength of the position.
Analysts back KO’s growth strategy
Piper Sandler reiterated an Overweight rating on Coca-Cola with a price target of $80, citing the company’s expanding convenience-store strategy.
The brokerage noted Coca-Cola’s recent rollout of mini cans, designed to provide portion control, lower price points, and a better fit for modern cooler layouts. According to Piper Sandler, initial launches have already produced incremental revenue gains, strengthening Coke’s retail partnerships and widening its distribution edge.
Elsewhere, this week analyst Peter Grom from UBS research said KO stock is attractive and recommends it with a Buy rating. Grom’s target price remains set at $80.
Buffett’s enduring bet
Buffett’s Coca-Cola stake has long been considered a textbook example of long-term investing. With KO’s steady price appreciation, wide profit margins, and reliable dividend growth, Berkshire Hathaway continues to harvest outsized returns from an investment now spanning more than three decades.
