Buffett's $1.3 Billion Coca-Cola Bet Has Paid Off Handsomely

Coca-Cola (KO) is an exemplary dividend growth stock that has turned modest investments into substantial annual income for patient investors. The company has raised its annual dividend payouts for 64 consecutive years, attracting investors like Warren Buffett to the stock.

Buffett started buying Coca-Cola stock in 1988 and spent a total of $1.3 billion on his company's stake in the business. He hasn't touched it since, with the position distributing a growing payout to Berkshire every year. This year alone, it's set to return $848 million to Berkshire.

A $10,000 investment made in Coca-Cola before its first dividend distribution of 1988 has paid out $123,266.64 in total dividends over almost 39 years, with the shares now worth about $336,000.