How much does Warren Buffet make in dividends from Coca-Cola?
Warren Buffett's $736 million in annual dividends from Coca-Cola today is almost like getting his initial investment back each year.
- HP Inc. (NYSE:HPQ)
- Aon plc (NYSE:AON)
- Capital One Financial Corporation (NYSE:COF)
- Coca-Cola Co (NYSE:KO)
- Moody's Corporation (NYSE:MCO)
- Chevron Corp (NYSE:CVX)
- American Express Company (NYSE:AXP)
- Occidental Petroleum Corporation (NYSE:OXY)
Warren Buffett, the venerated investor and CEO of Berkshire Hathaway, is set to amass over $6 billion in dividend income in the coming year, with a significant portion of this windfall emanating from just three stocks.
Dividend Data
The Coca-Cola Company's ( KO ) dividend yield is 3.07%, which means that for every $100 invested in the company's stock, investors would receive $3.07 in dividends per year. The Coca-Cola Company's payout ratio is 72.26% which means that 72.26% of the company's earnings are paid out as dividends.
The fourth stock that, collectively with Bank of America, Apple, and Occidental Petroleum, allows Buffett to rake in nearly $3.5 billion in annual dividend income is beverage stock Coca-Cola (KO -0.45%).
Company | Dividend Yield |
---|---|
Big 5 Sporting Goods Corp (BGFV) | 17.21% |
Arbor Realty Trust Inc. (ABR) | 14.07% |
Dynex Capital, Inc. (DX) | 13.20% |
Chicago Atlantic Real Estate Finance Inc (REFI) | 13.19% |
Dividend stocks hold a universal appeal, capturing the interest of both everyday investors and billionaires. Take Warren Buffett, for example. He's a strong advocate for dividend stocks and consistently incorporates a wide range of these equities into his investment portfolio each quarter.
Why Doesn't Berkshire Hathaway Pay its Shareholders a Dividend? Company founder and CEO Warren Buffett believes profits can generate better shareholder value spent in other ways. He frequently shares these views during Berkshire's annual meetings.
Stock | Market capitalization | Dividend yield |
---|---|---|
Cross Timbers Royalty Trust (CRT) | $104 million | 11.1% |
Dynex Capital Inc. (DX) | $726 million | 12.2% |
Horizon Technology Finance Corp. (HRZN) | $454 million | 9.7% |
Permian Basin Royalty Trust (PBT) | $660 million | 4.2% |
What if I invested $1,000 in Coca-Cola 10 years ago?
If you invested in the company 10 years ago, that decision could have paid off. According to CNBC calculations, a $1,000 investment in Coca-Cola in 2009 would be worth more than $2,800 as of Feb. 15, 2019.
Breaking Down Coca-Cola Co's Dividend Yield and Growth
The company's annual dividend growth rate over the past three years has been steady at 3.20%, with a consistent performance over the five-year span. Over the past decade, the annual dividends per share growth rate stands at an impressive 5.40%.
The Company normally pays dividends four times a year, usually April 1, July 1, October 1 and December 15. Shareowners of record can elect to receive their dividend payments electronically or by check in the currency of their choice.
Apple Inc.
Apple is the world's most valuable public company and Warren Buffet's largest stock holding. Under the leadership of CEO Tim Cook, Apple has continued to provide outstanding value to long-term shareholders.
Stockholder | Stake | Total value ($) |
---|---|---|
Berkshire Hathaway, Inc. (Investm... | 9.25% | 23,572,000,000 |
The Vanguard Group, Inc. | 8.18% | 20,849,001,041 |
BlackRock Fund Advisors | 4.60% | 11,728,473,654 |
SSgA Funds Management, Inc. | 3.59% | 9,148,227,729 |
Largest shareholders include Berkshire Hathaway Inc, Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Jpmorgan Chase & Co, Geode Capital Management, Llc, Morgan Stanley, and Fmr Llc .
Coca-Cola: $736,000,000 in annual-dividend income
With Berkshire Hathaway owning 400 million shares of co*ke, it means Buffett's company is on pace to collect $736 million in annual-dividend income from the beverage behemoth.
Bill Gates, the 7th richest man worth over 100 billion alone, receives about half a million dollars annually in dividends from his investments. How does he do it? He ensures that his portfolio is diversified and invests in sectors and stocks that are always in demand.
Historical dividend payout and yield for Amazon (AMZN) since 2024. The current TTM dividend payout for Amazon (AMZN) as of February 08, 2024 is $0.00. The current dividend yield for Amazon as of February 08, 2024 is 0.00%.
Stock | Implied upside from Feb. 7 close | Forward dividend yield |
---|---|---|
AbbVie Inc. (ABBV) | 12.6% | 3.5% |
Bank of America Corp. (BAC) | 23.6% | 2.9% |
Coca-Cola Co. (KO) | 8.4% | 3.1% |
McDonald's Corp. (MCD) | 9.6% | 2.3% |
Can you live off of dividends?
It is possible to achieve financial freedom by living off dividends forever. That isn't to say it's easy, but it's possible. Those starting from nothing admittedly have a hard road to retirement-enabling passive income.
Name | Price | Dividend Yield |
---|---|---|
MO Altria Group | $40.11 | 9.57% |
T AT&T | $16.84 | 6.59% |
XRX Xerox | $18.48 | 5.41% |
IBM International Business Machines | $186.34 | 3.56% |
As we demonstrated in this article, with a simple seven-fund portfolio and a $1 million retirement nest egg, you can live comfortably off of just your cash flow, especially when supplemented by social security checks.
For example, if the average yield is 3%, that's what we'll use for our calculations. Keep in mind, yields vary based on the investment. Calculate the Investment Needed: To earn $1,000 per month, or $12,000 per year, at a 3% yield, you'd need to invest a total of about $400,000.
In a market that generates a 2% annual yield, you would need to invest $600,000 up front in order to reliably generate $12,000 per year (or $1,000 per month) in dividend payments.
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