Berkshire Hathaway Rakes in $848M Annually from Coca-Cola Dividends

Warren Buffett's legacy at Berkshire Hathaway continues to generate significant returns for the conglomerate. One of its most valuable holdings is Coca-Cola stock, which has been part of Berkshire's portfolio since 1988.

Buffett began buying shares of Coca-Cola (NYSE:KO) in that year and today, the position represents around 9.3% of Berkshire Hathaway's investments. The conglomerate owns over 400 million shares, making it one of its largest holdings.

Not only has Coca-Cola's stock price risen to new all-time highs this year, but the company also pays a quarterly dividend of 53 cents per share. This translates to $212 million in annual dividends for Berkshire Hathaway from just this one stock, which is equivalent to around $848 million annually.

The dividend payouts are expected to increase further as Coca-Cola has raised its dividend payment every year for the past 64 years, including a recent raise from 51 cents per share to 53 cents per share in February. This means Berkshire Hathaway could collect more than $1 billion in annual dividends from Coca-Cola in the future.