Berkshire Hathaway now collects about $848 million a year in dividends from a Coca-Cola (KO) stake it bought for roughly $1.3 billion more than three decades ago.
Warren Buffett built the position during a seven-year buying spree that ended in August 1994, and the 400 million Coca-Cola (KO) shares are now worth about $37 billion with the stock near $93, reports The Motley Fool.
Berkshire still owned all of those shares at the end of June, according to its last quarterly filing.
The yearly payout now equals about 65% of what Berkshire originally spent on the stake.
In Berkshire’s 2022 shareholder letter, Buffett noted the annual Coca-Cola dividend had climbed from $75 million in 1994 to $704 million in 2022.
Says Buffett,
“All Charlie [Munger] and I were required to do was cash Coke’s quarterly dividend checks.”
Berkshire took in $816 million in Coca-Cola dividends in 2025.
In February, Coca-Cola raised its quarterly dividend about 4% to $0.53 a share, marking its 64th straight annual increase. At Berkshire’s 400 million shares, the new rate translates to roughly $848 million in annual payments, more than 11 times the amount of the check issued in 1994.
The 1994 dividend came to about 5.8% of what Berkshire paid, giving Buffett a solid yield before three decades of raises.
A buyer today starts with a yield of about 2.3%, meaning the same $1.3 billion put into the stock now would pay about $30 million a year.
Coca-Cola shares have climbed about 34% since the end of 2025, adding more than $9 billion to the value of Berkshire’s stake.
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This post Billionaire Warren Buffett’s $1,300,000,000 Stock Bet Is Now Worth $37,000,000,000 and Pays Berkshire $848,000,000 a Year may be modified as updates unfold.
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