Warren Buffett’s 5 Favorite Dividend Stocks for the Rest of 2022

The Coca-Cola Company (NYSE:KO)

Berkshire Hathaway’s Stake Value: $25,164,000,000
Dividend Yield as of August 17: 2.71%

Berkshire Hathaway started investing in The Coca-Cola Company (NYSE:KO) in 1988, with shares worth over $1 billion. The hedge fund has reaped massive gains from its position in the beverage company. Moreover, the fund’s dividend payments from the company have grown 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 Georgia-based company represented 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, raising its dividends consistently for the past 60 years. The company offers a quarterly dividend of $0.44 per share, with a dividend yield of 2.71%, as of August 17.

As of the close of Q1 2022, 64 hedge funds tracked by Insider Monkey owned stakes in The Coca-Cola Company (NYSE:KO), compared with 70 a quarter earlier. These stakes are collectively valued at over $29 billion. In addition to Warren Buffett, Rajiv Jain and Ray Dalio were also some of the company’s most prominent stakeholders in Q1.

ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here is what the firm had to say:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”