Warren Buffett Helps Berkshire Hathaway Make $848M From Coca-Cola Stock Each Year, Even if the Price Doesn’t Change
Key takeaways
- Berkshire’s Coca‑Cola stake delivers a steady $848 million in annual dividends, set to grow to over $1 billion as the dividend rises, underscoring Buffett’s lasting impact on the company’s cash flow.
- 400 million shares of KO
- 53 ¢ quarterly dividend
- $212 million quarterly cash flow
What happened
Berkshire Hathaway, led by former CEO Warren Buffett, owns 400 million shares of Coca‑Cola (KO), generating $848 million in annual dividend income from that single stock, even if the share price stays flat. The dividend per share rose from 51 ¢ to 53 ¢ in February 2026, and Coca‑Cola has increased its dividend for 64 straight years. Buffett’s exit as CEO and chairman did not alter the size of the Coca‑Cola holding, which now represents about 9.3 % of Berkshire’s portfolio as of Q2 2026.
Why it matters
The Coca‑Cola stake is a major, stable cash‑flow source for Berkshire, providing a predictable $848 million each year. With the dividend up 2 ¢, the annual cash inflow climbs to roughly $1 billion, boosting Berkshire’s free cash flow and giving the company a cushion against market volatility. The size of the position…
Short-term and longer-term
Short-term. Short‑term traders should note that Berkshire’s quarterly cash flow from Coca‑Cola is largely insulated from price swings, providing a stable income stream.
Longer-term. Long‑term investors see Berkshire’s Coca‑Cola holding as a cornerstone of its income strategy, delivering consistent dividends that have grown for 64 years.