Berkshire Hathaway Scores Big with $848M in Coca-Cola Dividend Income

Tesla CEO Elon Musk couldn't resist commenting on X after learning about Berkshire Hathaway's substantial dividend income from Coca-Cola. The investment empire earned $848 million in dividends for the year, calculated based on its roughly 400 million shares and the increased quarterly dividend of $2.12 per share.

Berkshire Hathaway's holding in Coca-Cola is a long-term investment that has provided significant passive income for the company. As former CEO Warren Buffett once said, 'I drink probably five 12-ounce Cokes a day... I can't imagine anybody that feels better than I do.'

Buffett emphasized the power of this approach in his 2022 letter to shareholders, citing how Coca-Cola's dividend had grown from $75 million in 1994 to $704 million in 2022. He noted that 'all Charlie [Munger] and I were required to do was cash Coke's quarterly dividend checks.'

The success of Berkshire Hathaway's Coca-Cola investment highlights the importance of holding onto good assets for a long time, allowing returns to accumulate.