‘High on Coke’: Elon Musk stunned by Berkshire’s dividend payout. Learn how to build your own passive income stream now

Tesla CEO Elon Musk was astonished by Berkshire Hathaway's substantial dividend payout from its Coca-Cola investments. In 2022, the company earned $704 million in dividends from its Coca-Cola holdings, based on roughly 400 million shares and a 44-cent per share quarterly dividend in 2022 (1). This figure has since increased to an estimated $848 million in dividend income for 2026, with Coca-Cola raising its dividend to $2.12 per share (2).

Berkshire Hathaway's CEO, Warren Buffett, has a long-standing appreciation for Coca-Cola, having expressed that he enjoys the beverage daily (3). Buffett's investment in Coca-Cola proved to be a significant source of passive income, with the company's dividend payments growing consistently over the years (4). Buffett emphasized the power of this strategy, sharing that the $75 million dividend received in 1994 grew to $704 million by 2022, and he expects the checks to continue growing (5).

He recommends focusing on the company's business fundamentals, as well as its durable competitive advantages, when investing in dividend stocks (6). The Coca-Cola dividend example illustrates that building wealth can come from owning good assets and holding them for the long term, rather than making the right call at the right moment (7).

A simpler approach to passive income is through index funds, such as the S&P 500, which offers consistent returns and diversification (8). Even small, regular contributions can accumulate over time, helping investors grow their wealth steadily (9).