Legendary investor Warren Buffett is a huge fan of Coca-Cola (NYSE: KO) -- and his stock portfolio proves it. Through Berkshire Hathaway, he holds 400 million shares of the iconic beverage giant. Coca-Cola owns popular brands like Sprite, Minute Maid, Dasani, and Powerade.
The best part? Those shares bring in dividend income every quarter, adding a little extra fizz to his portfolio.
Coca-Cola's been serving up consistent payouts for decades, with its 62nd consecutive dividend increase approved back in February. As of this writing, the dividend yield sits at 3%.
Thinking about following in Buffet's footsteps in 2025? Here's what you need to know.
Let's take a quick look back at 2024. Coca-Cola poured out quarterly dividends of $0.485 per share in April, July, and October. The final dividend payment of 2024 is slated to hit investors' accounts on Dec 16., bringing the total annual dividend to $1.94. With 4.31 billion shares outstanding (based on Coca-Cola's latest financial reports), the total dividend payout for 2024 will come out to about $8.36 billion.
Given Coca-Cola's strong track record, there's a good chance we'll see another dividend hike in February 2025. While future dividends aren't guaranteed, here's a look at recent increases for a taste of what might be in store:
Announcement Date | Annual Dividend | Quarterly Dividend | Quarterly Dividend Increase |
---|---|---|---|
Feb. 15, 2024 | $1.94 | $0.485 | 5.4% |
Feb. 16, 2023 | $1.84 | $0.46 | 4.6% |
Feb. 17, 2022 | $1.76 | $0.44 | 5% |
Feb. 18, 2021 | $1.68 | $0.42 | 2.4% |
Data source: Coca-Cola. Chart by author.
Let's say the quarterly dividend bubbled up to $0.50 in 2025. That would raise the annual payout to $2 per share.
However, before diving in, remember to do your research. Coca-Cola's been a consumer favorite for decades, but the real question is whether it can keep sales flowing at higher prices as inflation cools. If Coca-Cola holds its place as a beverage giant, those dividends should keep rolling in like clockwork.
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Charlene Rhinehart has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.