Key Points
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Apple and Alphabet are now top positions in the Berkshire Hathaway portfolio.
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Coca-Cola accounts for 9.8% of Berkshire’s total portfolio holdings.
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The conglomerate is generating over $800 million from Coca-Cola’s dividend payouts each year.
- 10 stocks we like better than Coca-Cola ›
The new era of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) under CEO Greg Abel suggests greater comfort with owning tech stocks for the conglomerate. Apple and Alphabet are now two of Berkshire’s top five holdings.
That said, one of Berkshire’s other top holdings has nothing to do with tech or artificial intelligence. Coca-Cola (NYSE: KO) is Berkshire’s third-largest holding, accounting for 9.8% of the total portfolio. And there’s a key reason why it’s still likely to remain a top holding even with the CEO change at Berkshire.
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Dividend payouts that generate hundreds of millions
Tech companies may be working on more exciting projects than creating different soda flavors. But beverage sales are a cash cow for Coke, generating net revenue of $47.9 billion in 2025.
With all that cash rolling in, Coca-Cola has not only been able to continuously pay a dividend but has also boosted its payout for 64 consecutive years. That has made it a Dividend King, an elite status reserved for companies that have increased their dividend payouts for 50 or more consecutive years.
In turn, that dividend payout is generating hundreds of millions of dollars for Berkshire each year. As of this writing, Coca-Cola’s dividend yields 2.4% and pays out $2.12 per share for the year.
With 400 million shares of the beverage maker and based on a dividend payout of $2.12, Berkshire generates $848 million of dividends from Coca-Cola in a year. That’s a 65% yield on Berkshire’s original $1.3 billion Coca-Cola investment.
Coca-Cola’s stock price is also on a strong run in 2026, climbing 24.5% compared to the S&P 500‘s (SNPINDEX: ^GSPC) 13.3% return. That stock price appreciation and dividend payout increase Berkshire’s total return from its Coca-Cola investment, giving Abel plenty of reason to keep it as a top holding in the portfolio for the foreseeable future.
Should you buy stock in Coca-Cola right now?
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
