Warren Buffett’s Berkshire Hathaway is collecting over $204 million every quarter from Coca-Cola, a steady cash-producing asset in their portfolio. The 400 million-share stake generates an annual dividend of $2.04 per share, making it an extraordinary income stream for long-term holders.
Berkshire Hathaway owns approximately 400 million shares of Coca-Cola, which pays out a quarterly dividend of $0.51 per share to shareholders on record as of December 1. The company’s 63-year dividend growth streak has earned it Dividend King status, with the most recent increase coming in 2025.
However, the underlying cash flow dynamics warrant attention. In 2025, Coca-Cola paid out $8.78 billion in dividends against operating cash flow of just $7.41 billion, a payout ratio of 118.5%. This divergence between operating cash flow and dividend payments suggests either temporary working capital pressures or a deliberate shift in capital allocation that bears monitoring.
Despite this, the company remains well-covered on a net income basis, with full-year 2025 net income covering the $8.78 billion dividend payout at 1.5x. For investors, monitoring Coca-Cola’s free cash flow guidance of $12.2 billion materializes and its 2026 volume growth and pricing strategies will be key to understanding its future dividend sustainability.
Buffett’s long-term investment approach with Coca-Cola demonstrates the compounding power of dividend growth over decades, highlighting the value of buying quality businesses and holding them long enough for compounding to work.
Source: https://247wallst.com/investing/2026/02/17/warren-buffett-collected-816-million-in-dividends-from-this-single-stock