Berkshire Hathaway (BRK.B) (BRK.A), led by legendary investor Warren Buffett, continues to demonstrate the compounding power of long-term value investing through its massive holding in Coca-Cola (KO). In 2025, the company’s stake of approximately 400 million shares will generate an estimated $816 million in dividend income, thanks to Coca-Cola’s projected annual dividend of $2.04 per share.
This means that every single second of the year, Berkshire Hathaway will collect nearly $26 just from Coca-Cola dividends — a staggering flow of passive income from one stock alone.
Breaking Down the Numbers
At an annual payout of $816 million, Berkshire’s Coca-Cola dividends break down as follows:
- Daily income: ~$2.23 million
- Hourly income: ~$93,150
- Per minute: ~$1,552
- Per second: ~$25.87
These figures underscore how a significant, long-held equity stake in a reliable dividend-paying company can provide enormous, consistent income — without requiring any active trading or asset sales.
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Why Coca-Cola Matters in Buffett’s Portfolio
Buffett began investing in Coca-Cola in the late 1980s, and over the decades it has become one of Berkshire’s most iconic and rewarding investments. Coca-Cola’s global brand presence, strong cash generation, and consistent dividend growth make it a model example of the type of business Buffett prefers: high-quality companies with enduring competitive advantages and shareholder-friendly capital allocation.
The company’s 2025 dividend payout is expected to remain at $0.51 per share quarterly, totaling $2.04 annually. This marks another year in Coca-Cola’s long history of dependable distributions, providing Berkshire with a reliable cash stream that can be redeployed elsewhere within the conglomerate.
Reinvesting, Not Distributing
While Coca-Cola pays dividends, Berkshire Hathaway does not. Buffett has long argued that he can create more value by reinvesting capital within Berkshire than by returning it directly to shareholders. As a result, the billions in dividends received — like the $816 million this year from Coca-Cola — are typically used to fund acquisitions, buybacks, or support other holdings, further reinforcing Berkshire’s internal compounding engine.
Coca-Cola’s payouts exemplify Buffett’s preferred way to harvest cash flow: through stakes in mature, cash-rich businesses that return profits to shareholders without requiring operational control.
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Bigger Picture: Dividends Across the Portfolio
Although Coca-Cola is a standout, it represents just one piece of Berkshire’s broader dividend machine. In total, the company is expected to earn around $4.4 billion in dividends in 2025 from its publicly traded equity holdings. Other major contributors include Chevron (CVX), Bank of America (BAC), American Express (AXP), and Kraft Heinz (KHC).
Still, Coca-Cola’s role as a cornerstone holding illustrates the long-term payoff of patience and discipline in equity investing. With every passing second, Buffett’s conviction in this timeless brand continues to compound — literally.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.