Berkshire Hathaway's Coca-Cola Dividend Income Hits $816M Per Year on $1.3B Investment

Berkshire Hathaway earns $816m per year from Coca-Cola dividends, amounting to $1,552 per minute, thanks to its 400m share stake invested at $1.3bn. Coca-Cola has increased dividends for over six decades, aligning with Warren Buffett's investment strategy of owning strong, dividend-paying companies with durable competitive advantages.

Berkshire Hathaway, the investment powerhouse helmed by Warren Buffett, continues to generate substantial income from its Coca-Cola (KO) holdings. The company's 400 million shares in Coca-Cola, initially purchased for approximately $1.3 billion, now yield an annual dividend income of $816 million. This translates to a remarkable $1,552 per minute, demonstrating the enduring value of Buffett's long-term investment strategy focused on owning strong, dividend-paying companies [1].

Coca-Cola's dividends have been increasing for over six decades, aligning perfectly with Buffett's investment philosophy. The company pays dividends quarterly at a rate of $0.51 per share, totaling $2.04 per share annually in 2025. This stable and rising dividend history underlines the reliability of Coca-Cola as an investment [1].

The dividend income from Coca-Cola is a significant part of Berkshire Hathaway's broader dividend portfolio, which is estimated to exceed $4 billion in 2025. Other top dividend stocks in the portfolio include Chevron (CVX), Bank of America (BAC), and American Express (AXP), each contributing hundreds of millions annually [1].

Berkshire Hathaway itself does not issue dividends to its shareholders. Instead, Buffett prefers to accumulate income internally through dividends from its extensive portfolio. This strategy offers a steady inflow of cash without the need to sell any shares, a key feature for investor patience and compounded growth [1].

Despite a decline in net earnings for the second quarter and first six months of 2025 compared to the same periods in 2024, Berkshire Hathaway's core operations, such as insurance and energy, continued to contribute positively to its earnings. The company remains focused on its diverse business model, which provides a buffer against market volatility [2].

The steady income stream from Coca-Cola underscores the power of long-term investing in strong, dividend-paying companies. Buffett's strategy of patient ownership and focus on reliable cash flows continues to benefit Berkshire Hathaway, reinforcing why Coca-Cola remains a cornerstone of its portfolio and a quintessential example of dividend investing success [1].

References:
[1] https://www.barchart.com/story/news/33856963/warren-buffetts-berkshire-hathaway-now-makes-816-million-per-year-from-coca-cola-stock-dividends-alone-on-an-investment-of-1-3-billion
[2] https://www.theglobeandmail.com/investing/markets/stocks/BRK-A-N/pressreleases/33850437/berkshire-hathaway-reports-decline-in-q2-2025-earnings/