Warren Buffett’s Top 5 Dividend Stock Picks

3. Coca-Cola Company (NYSE:KO)

Berkshire Hathaway’s Stake Value: $22,407,999,000
Dividend Yield as of November 18: 2.88%

An American multinational beverage company, Coca-Cola Company (NYSE:KO) is one of the strongest dividend stocks in the US market. The company has been raising its dividends consistently for the past 60 years. Currently, it pays a per-share dividend of $0.44 every quarter and has a dividend yield of 2.88%, as of November 18.

Coca-Cola Company (NYSE:KO) first invested over $1 billion in Coca-Cola Company (NYSE:KO) in 1988. The hedge fund has earned millions in dividends from the company, which amounted to $672 million in 2021. At the end of Q3 2022, the fund owned over 400 million KO shares, worth over $22.4 billion. The company accounted for 7.56% of Warren Buffett’s portfolio.

Street analysts appreciated the quarterly earnings of Coca-Cola Company (NYSE:KO). In October, both UBS and Barclays raised their price targets on the stock to $68 and $67, respectively.

As of the close of Q3 2022, 59 hedge funds tracked by Insider Monkey owned stakes in Coca-Cola Company (NYSE:KO), with a total value of over $25 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.”