Meet the Dividend Stock That Warren Buffett Backed for Decades. Here's Why Greg Abel Is Still Holding.

Berkshire Hathaway, led by CEO Greg Abel, continues to hold a significant investment in The Coca-Cola Company (NYSE: KO), one of Warren Buffett's long-standing favorites. In 2009, a signal similar to the one that initially caught Warren Buffett's attention for Nvidia was detected for Coca-Cola. This beverage giant provides a straightforward business model and a history of consistent growth that aligns with Buffett's successful investing approach.

Buffett acquired Coca-Cola shares for Berkshire Hathaway during the aftermath of the 1987 stock market crash, eventually accumulating approximately 400 million shares for $1.3 billion by 1994. Those shares are now worth nearly $36 billion, with Berkshire Hathaway earning roughly $848 million annually through dividends, accounting for nearly two-thirds of Buffett's initial investment.

Coca-Cola's enduring business model, presence in global markets, and ability to generate revenue through price increases, organic growth, new products, and acquisitions contribute to its steady growth and ability to raise dividends. As a Dividend King with 64 consecutive annual increases, Coca-Cola has demonstrated its resilience in economic cycles and challenging times.

While Coca-Cola isn't among the 10 best stocks recommended by The Motley Fool Stock Advisor, its long-term growth potential and dividend income make it an appealing investment option.