Warren Buffett's Berkshire Hathaway BRK owns 400 million shares of The Coca-Cola Company KO stock, which is roughly 9.3% of the company. And it's a significant stake for Berkshire, representing approximately 6.5% of its portfolio.
Coca-Cola is one of the world's leading beverage companies and it currently rewards its shareholders with a quarterly dividend of $0.485 per share, equating to an annual dividend of $1.94 per share. Let’s find out how much Berkshire will earn in dividends from its stake.
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To determine the total annual dividend income from this investment, we multiply the number of shares by the annual dividend per share:
Total Annual Dividend = Number of Shares x Annual Dividend per Share
So…
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Berkshire shares of Coca-Cola: 400,000,000
Coca-Cola annual dividend per share: $1.94
Total Annual Dividend = 400,000,000 x 1.94
Result: $776,000,000
Berkshire Hathaway will receive $776 million in dividends from Coca-Cola this year based on its current dividend rate. This equates to $194 million quarterly, or about $2.13 million daily.
The income Berkshire earns from Coca-Cola aligns with Warren Buffett’s investment philosophy, which emphasizes steady, predictable returns – and it's also worth noting that Coca-Cola has raised its annual dividend payment for 62 consecutive years, so Berkshire's annual income will likely grow in the years ahead.
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