1 Warren Buffett Stock Down 7% to Buy Now and Hold Forever

Key Points

• Coca-Cola is one of Berkshire Hathaway's top holdings.

• Coke has increased its dividend annually for 63 consecutive years.

• 10 stocks we like better than Coca-Cola ›

Famed investor Warren Buffett and the company he has led for decades, Berkshire Hathaway, have achieved success that has made their investment moves some of the most closely watched in the stock market. If you're looking for a Berkshire stock to buy and hold forever, look no further than Coca-Cola (NYSE: KO).

Over the past 12 months, Coca-Cola's stock is down close to 7%, while the S&P 500 is up by approximately 16%. Despite its underperformance during that time, Coca-Cola remains a valuable addition to most investors' portfolios, especially those seeking consistent and reliable income.

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With its maturity, it's unrealistic to expect consistent double-digit annual gains from Coca-Cola's stock. If you're investing in Coca-Cola, the focus should be on its dividend. At the time of this writing on Sept. 24, Coca-Cola's dividend yield is 3.1%, more than double the S&P 500 average.

The above-average dividend is great, but the appeal of holding onto Coca-Cola's stock for the long haul lies in its commitment to consistently increasing its annual dividend. Coca-Cola is a Dividend King (a company with at least 50 consecutive years of dividend increases), with 63 consecutive years of dividend raises.

When you invest in Coca-Cola, you know you're investing in a well-established industry leader that has stood the test of time. Its products are in virtually every corner of the world, and the company has demonstrated its commitment to adapting its portfolio to meet changing consumer preferences. That's a recipe for longevity, which is why I personally plan to hold Coca-Cola for the long haul.

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Stefon Walters has positions in Coca-Cola. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.