5 Best Dividend Stocks to Buy According to Warren Buffett

2. The Coca-Cola Company (NYSE:KO)

Berkshire Hathaway’s Stake Value: $25,164,000,000
Dividend Yield as of October 17: 3.15%

Berkshire Hathaway has been investing in The Coca-Cola Company (NYSE:KO) since 1988, purchasing shares worth over $1 billion. The hedge fund has gained massive profits from its position in the beverage company. The fund’s dividend payments from the company increased from $88 million in 1995 to $672 million in 2021. The hedge fund owned 400 million KO shares in Q2 2022, valued at over $25 billion. The company accounted for 8.38% of Warren Buffett’s portfolio.

The Coca-Cola Company (NYSE:KO) holds one of the longest dividend growth streaks in the US market, having raised its dividends consistently for the past 60 years. The company offers a quarterly dividend of $0.44 per share, with a dividend yield of 3.15%, as recorded on October 17.

In October, Wedbush initiated its coverage of The Coca-Cola Company (NYSE:KO) with an Outperform rating and a $63 price target. The firm appreciated the company’s organic performance among its peers and called it the market leader in the carbonated soft drink category with the best pricing power.

At the end of June 2022, 60 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), down from 64 in the previous quarter. These stakes have a total value of over $28.3 billion.

Aristotle Capital Management, LLC mentioned The Coca-Cola Company (NYSE:KO) in its Q2 2022 investor letter. Here is what the firm has to say:

“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the refranchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social medias for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”