Musk Pokes Fun at Berkshire's Coke Dividend Bonanza

Elon Musk surprised his fans by making a comment about Berkshire Hathaway's massive dividend windfall from its Coca-Cola holdings. In a post on X, Musk joked that Berkshire was 'high on Coke' after it received £526 million ($704 million) in dividends from its approximately 400 million shares in the beverage giant.

The payout came from Coca-Cola's quarterly payments of around £0.33 ($0.44) per share in 2022, which added up to the total dividend amount disclosed in Berkshire's annual report. This income is separate from the market value of its holding and does not depend on selling the shares.

Berkshire Hathaway's Coca-Cola stake is projected to generate around £633 million ($848 million) in 2026, based on higher dividends and retaining the relevant shares. This would be an increase from the 2022 dividend total and a testament to Berkshire's long-term investment strategy under Warren Buffett.

Buffett has expressed confidence in Coca-Cola's future dividends, describing the task of collecting them as straightforward: 'All Charlie [Munger] and I were required to do was cash Coke's quarterly dividend checks. We expect that those checks are highly likely to grow.'