Warren Buffett to yield $776 million in Coca-Cola dividends this year

In 2024, Warren Buffett's Berkshire Hathaway will earn $776 million in Coca-Cola dividends. Buffett, a lifelong fan, drinks five cans daily.

Probably the most famous investment story of all time is that of Warren Buffett’s investment in Coca-Cola. In 2024, Berkshire Hathaway, Buffett’s giant investment company, is set to collect $776 million in dividends from Coca-Cola.

Warren Buffett's Coca-Cola investment yields $776 million in dividends in 2024 from 400 million shares, reflecting a quarterly dividend increase to 48.5 cents per share. (AP Photo/Nati Harnik, File)(AP)

Due to Coca-Cola's recent raise of its quarterly dividend to 48.5 cents per share—it was $0.41 in the prior year—the 400 million shares are due for a payout. Dividing by the cost per share—$0.485 and paid quarterly—for 400 million shares equals a great total for one year. The shares are a terrific rainmaker for an investment that Buffett has held for the better part of three decades.

His 400 million shares, valued at over $25 billion, form a significant part of his portfolio.

Buffett’s admiration for Coca-Cola goes beyond its financial value

The 94-year-old is also a lifelong fan of the product itself, consuming five cans a day. “If I eat 2,700 calories daily, a quarter of that is Coca-Cola. I drink at least five 12-ounce servings. I do it every day,” Buffett told Fortune in 2015.

Despite being Coca-Cola’s largest shareholder, Buffett doesn’t get special perks. His wife, Astrid, is known to shop for the “soda on sale”. According to Buffett’s daughter, Susie, “Astrid is more likely to try to find out where it’s on sale and buy it on sale.”

Coca-Cola holds a special place in Buffett’s life — even if he still prefers to buy it at a discount.

Surprisingly, Buffett wasn’t always a Coca-Cola fan. For nearly 50 years, he drank Pepsi, earning the nickname “Pepsi Warren” from his son, Howard. His switch to Coke came in the 1980s, thanks to a longtime neighbour, Don Keough. Keough, who later became Coca-Cola’s president and COO, introduced Buffett to Cherry Coke, dubbing it the “nectar of the gods.” Keough sent him samples, and Buffett was hooked. In 1986, he declared Cherry Coke the official drink of Berkshire Hathaway’s annual meeting, solidifying his loyalty to the brand.