Coca-Cola Rakes in $800 Million Annually for Berkshire Hathaway

US
Published:

Coca-Cola continues to be a lucrative investment for Berkshire Hathaway, contributing nearly $800 million to the conglomerate's earnings each year. As the fourth largest holding in Buffett's portfolio, Coca-Cola shares account for 8.4% of Berkshire’s investments, with the company owning 400 million shares. The beverage giant pays a quarterly dividend of $0.48, resulting in an impressive $768 million in annual income.

This consistent income stream is attributed to Coca-Cola's strong brand recognition and broad product offerings, which include over 200 drink options available in more than 200 countries. Even during challenging economic times, Coca-Cola maintains a robust demand as consumers frequently purchase their favored beverages.

Despite its attractive dividend yield of 3.1% and a long history of increasing dividends for 62 consecutive years, investors seeking substantial growth may view Coca-Cola's stock differently. Over the past decade, Coca-Cola's total return was about 101%, lagging behind the S&P 500, which more than tripled investor returns.

While Coca-Cola remains a strong contender for dividend-focused investors, its growth potential appears limited due to the maturity of the beverage industry.

Weekly Newsletter

News summary by melangenews

Loading...

More from United States

Tragic Collision of Passenger Plane and Military Helicopter in Washington Claims 67 Lives

A catastrophic midair collision between a passenger plane and a military helicopter in Washington D.C. on Wednesday resulted in the deaths of all 67 individuals on board. The incident involved American Airlines flight 5342, which was a Bombardier CRJ-700 carrying 60 passengers and four crew members, and a military Sikorsky H-60 Black Hawk helicopter occupied by three service members. The collision occurred over the Potomac River at approximately 8:48 PM local time while the plane was making its final approach to Ronald Reagan Airport. Eyewitness reports indicated that the helicopter veered dangerously close to the aircraft before the impact, causing both to explode in midair. Emergency teams recovered 28 bodies from the plane and one from the helicopter, confirming that no survivors emerged from the wreckage. American Airlines expressed its condolences and stated that it is cooperating with investigation efforts, while President Donald Trump commented on the tragedy, stating it "seemed avoidable" given the clear weather conditions and routine approach procedure. A joint investigation by civil and military authorities is underway to determine the accident's cause.
US

FDA Approves Revolutionary Bioengineered Blood Vessel for Trauma Treatments

The U.S. Food and Drug Administration (FDA) has approved a groundbreaking bioengineered blood vessel aimed at addressing the needs of trauma patients. Developed by North Carolina-based Humacyte, this vessel is designed to integrate with a patient’s body over time, providing a solution for individuals who have suffered severe injuries that impede blood circulation, particularly in cases of amputation. According to founder and CEO Laura Niklason, traditional treatments using veins are often inadequate, especially when patients cannot provide usable options from their own bodies. The FDA approval follows extensive testing involving 51 civilian and 16 military patients, revealing that nearly 92% of the engineered vessels remained functional after 30 days, compared to 79% for synthetic alternatives. Additionally, the infection rate for the bioengineered vessels was under 1%, significantly lower than the over 8% rate associated with synthetic grafts, as published in the journal JAMA Surgery. While the approved application is limited to trauma cases, Humacyte is exploring additional uses for its technology, including potential applications in kidney dialysis and peripheral artery disease.
US

Trump Plans to Detain 30,000 Migrants at Guantanamo Bay

Former President Donald Trump has outlined a controversial plan to detain up to 30,000 migrants at the Guantanamo Bay detention facility if he is re-elected in 2024. According to a statement released by Trump's campaign, this measure aims to address illegal immigration and bolster national security. This proposal comes amidst intensifying discussions on immigration policies in the United States, reflecting Trump's previously embraced hardline stance during his presidency. Trump's administration was marked by strict immigration measures, including family separations and the construction of barriers along the U.S.-Mexico border. Critics of the plan have raised concerns about humanitarian implications and the legality of detaining a large number of migrants indefinitely. Legal experts argue that such actions could face significant pushback in courts. The proposal reflects a broader trend among certain political leaders advocating for stringent immigration control as a response to increasing cross-border migration. As the 2024 presidential election approaches, Trump's immigration policy is expected to be a focal point of debate among candidates.
US