Warren Buffett's investment in Coca-Cola, bought between 1988 and 1994 for $1.3 billion, now pays Berkshire Hathaway $848 million annually, reflecting a 65% yield on the original cost due to 38 years of dividend growth. However, new investors buying Coca-Cola shares today face a much lower yield of 2.2%, less than half the current 10-year Treasury yield, highlighting the importance of long-term holding for dividend growth. The article illustrates this with a 72-year-old retiree who inherited shares bought in 1999, showing how dividends have grown to provide steady income despite stock price fluctuations. It warns that new buyers should consider the lower immediate income and longer wait to match Treasury returns, emphasizing that Buffett's success came from decades of holding and reinvestment, not short-term income needs.
As of Nov 09, 2026 06:21 WIB, Coca-Cola shares trade near their 52-week high at USD 95.67, just shy of the peak USD 95.83, while the dividend yield stands at 2.22%, closely matching the article's cited yield for new investors. This yield contrasts sharply with the much higher 65% yield Buffett's original investment now generates annually, illustrating the value of long-term holding. The typical hold time on Pluang is 155 days, highlighting that most investors experience a shorter horizon than Buffett's decades-long strategy.
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Investing $300,000 equally in Coca-Cola, PepsiCo, and Keurig Dr Pepper yields about $8,860 annually in dividends, with PepsiCo providing the largest share. Coca-Cola shows steady dividend growth backed by strong cash flow, while Keurig's dividend is ...
Investing $250,000 equally in three Dividend Kings—Johnson & Johnson, Coca-Cola, and Procter & Gamble—generates about $5,580 in annual passive income with a blended yield of 2.23%. These companies have raised dividends for over 60 years, offering rel...
