Buffett's Picks Fuel Berkshire's Dividend Machine

Warren Buffett's legacy continues to shape Berkshire Hathaway's portfolio. As executive chair of the conglomerate, he left his mark on its massive stock portfolio valued at roughly $363 billion.

Two stocks championed by Buffett during his tenure as CEO are now earning significant annual dividends for Berkshire. Coca-Cola (NYSE: KO) and Chevron are among the longest-held positions in the company's portfolio, with a combined value of over $35.4 billion.

Coca-Cola has been a staple in Berkshire's portfolio since the 1980s, and its stake is now worth roughly 9.4% of the company's overall holdings. With a projected free cash flow of $12.4 billion this year, Coca-Cola should easily cover its projected annual dividend distribution of around $9.1 billion.

Buffett praised the company in his 2023 letter to shareholders, saying 'when you find a truly wonderful business, stick with it.' The beverage giant has increased its dividends annually for 64 consecutive years and is part of an elite group called Dividend Kings.