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