3 Reasons This Top Warren Buffett Dividend Stock Is a Passive Income Investor's Dream
This single position now generates about $850 million in annual income for the conglomerate.
Overview
In the past decade, shares of Coca-Cola (NYSE: KO) have generated a total return of 169% (as of Aug. 13). This performance falls significantly short of the 319% total return of the S&P 500 index (SNPINDEX: ^GSPC).
Therefore, people might be wondering why Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) owns 400 million shares, a position that Warren Buffett paid a total of $1.3 billion for from 1988 to 1994. It might be because the beverage stock has raised its dividend for an unbelievable 64 straight years.
Details
And based on its current dividend of $0.53 per quarter, Coca-Cola sends $848 million in annual passive income to the Omaha-based conglomerate. This is 65% of the original cost basis.
Source
Originally published at www.fool.com.
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