1 Top Warren Buffett Stock for Dividend Investors
Key Points
Coca-Cola is one of the biggest holdings in the Omaha conglomerate’s public equities portfolio.
It's impossible for investors not to come away impressed by the beverage company’s dividend streak.
- 10 stocks we like better than Coca-Cola ›
Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) owns dozens of businesses in its $350 billion public equities portfolio. Not just any company can get in, of course. It must meet strict quality and valuation criteria before being considered.
But there's one business that has been a mainstay holding for quite some time. And it throws off a ton of cash for the Omaha-based conglomerate. Here's a leading Warren Buffett stock that dividend investors need to know -- and consider for their portfolios.
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As of this writing, Coca-Cola (NYSE: KO) is a top-five position in Berkshire Hathaway's portfolio. It's currently valued at $32.5 billion. The company's strong brand supports customer loyalty, pricing power, and huge profits. These are compelling characteristics in Buffett's eyes. And they have stood the test of time.
The beverage stock pays a dividend that yields 2.61%, sending investors $0.53 per share each quarter. Since Berkshire Hathaway owns 400 million shares, it's able to generate $848 million in annualized passive income.
Individual investors who are after a dependable income stream for their portfolios can do much worse than taking a closer look at Coca-Cola. It's a Dividend King, a company that has raised its dividend in 50 or more consecutive years. Coca-Cola's board of directors has raised the payout in 64 straight years, which is a phenomenal streak that demonstrates the company's unwavering commitment to its shareholder base.
Are you ready to quench your thirst for dividends?
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
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