Coca‑Cola (KO) Stock — Why Buffett Has Kept It for 30 Years Without Selling

TLDR

• Warren Buffett has maintained a holding of 400 million KO shares since the early 1990s without selling any.
• Berkshire Hathaway is projected to receive $848 million in KO dividends in 2026, a significant increase from the $75 million earned in 1994.
• KO has increased its dividend for 64 consecutive years, qualifying it as a “Dividend King.”
• KO stock has gained 7% year-to-date and delivered a return of nearly 11% during the 2022 bear market.
• A consensus of 15 Wall Street analysts rates KO a Strong Buy, with an average price target of $85.07.

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(SeaPRwire) –   Over his career, Warren Buffett has placed many famous investments. His stake in Coca-Cola may be his least talked-about bet — and also his most profitable.

Berkshire Hathaway established its position of 400 million shares in KO during the early 1990s. Buffett has not altered this holding since. He has simply allowed the dividend income to accumulate.

The Coca-Cola Company, KO

That investment produced $75 million in dividends in 1994. For the current year, it is expected to generate $848 million — all without Berkshire divesting a single share.

Buffett has attributed this result to the power of dividend compounding. He is famously quoted as saying: “Growth occurred every year, just as certain as birthdays… All we were required to do was cash Coke’s quarterly dividend checks.”

The cumulative dividend yield on Berkshire’s original investment cost is now approximately 60%.

A Dividend King with 64 Years of Raises

KO’s current quarterly dividend is $0.53 per share, resulting in a yield of about 2.84%. This alone positions it as one of the market’s more dependable income investments.

Even more significant is its consistent record. Coca-Cola has boosted its dividend payout each year for 64 years in a row. This firmly places it in the “Dividend King” category — a title given to companies with at least 50 consecutive years of dividend growth.

Very few companies globally can claim a comparable history.

The stock has also demonstrated resilience during market downturns. In the 2022 bear market, while the S&P 500 declined by approximately 18%, KO achieved a return of nearly 11%.

Analysts Bullish, Price Target Points to Further Upside

Wall Street’s perspective on KO is overwhelmingly favorable. Among the 15 analysts covering the stock, 14 assign a Buy rating and one recommends Hold. The overall consensus is a Strong Buy.

The average price target is $85.07, suggesting potential upside of around 8.7% from present prices.

KO has a market capitalization of roughly $321 billion. Its share price has fluctuated between $65.35 and $82.00 over the past 52 weeks.

Given market volatility in 2026 — with the Shiller P/E ratio remaining high near 37, alongside uncertainty from the Iran conflict and increasing energy costs — defensive stocks like KO are garnering fresh interest.

Berkshire Hathaway (BRK.B), also identified as a defensive holding, gained 3% during the 2022 downturn, contrasting with the S&P’s 18% decline. Its shares are down approximately 4% this year, a trend partly linked to the leadership change from Buffett to new CEO Greg Abel.

KO’s present price is $74.67, reflecting a 7% increase since the start of the year. Its daily trading range has been between $74.63 and $75.69.