Meet the Dividend Stock That Warren Buffett Backed for Decades. Here's Why Greg Abel Is Still Holding.
Sometimes, the classics really are tough to beat.
The Coca-Cola Company has been a long-standing investment in Berkshire Hathaway's portfolio, and one of Warren Buffett's favorite stocks. According to Yahoo Finance, Buffett bought Coca-Cola stock for Berkshire Hathaway decades ago, following the 1987 stock market crash. By 1994, Berkshire had accumulated approximately 400 million shares for $1.3 billion.
Those shares are now worth nearly $36 billion. Coca-Cola offers a simple business model and decades of steady growth, aligning with Buffett's investing style. The company pays $2.12 per share in dividends, with Yahoo Finance noting that these dividends pay back roughly two-thirds of Buffett's initial investment each year.
The stock remains in Berkshire's portfolio under new CEO Greg Abel, who took command at the start of this year. The Coca-Cola Company offers a steady dividend, making it a potential fit for investors looking for a reliable income stream.
Brief written by urgent.news from Motley Fool, Yahoo Finance — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
