TLDR
- Warren Buffett has held 400 million KO shares since the early 1990s and hasn’t sold a single one
- Berkshire Hathaway will collect $848 million in KO dividends in 2026, up from $75 million in 1994
- KO has raised its dividend for 64 straight years, earning it “Dividend King” status
- KO stock is up 7% YTD and returned nearly 11% during the 2022 bear market
- 15 Wall Street analysts give KO a consensus Strong Buy, with an average price target of $85.07
Warren Buffett has made a lot of famous bets over the years. His Coca-Cola trade might be the quietest one — and the most lucrative.
Berkshire Hathaway built its 400 million share position in KO in the early 1990s. Since then, Buffett hasn’t touched it. He’s just let the dividends roll in.
In 1994, that position generated $75 million in dividends. This year, it’s on track to deliver $848 million — without Berkshire selling a single share.
Buffett has credited dividend compounding for this outcome. His famous line: “Growth occurred every year, just as certain as birthdays… All we were required to do was cash Coke’s quarterly dividend checks.”
Berkshire’s cumulative dividend yield on its original cost basis is now around 60%.
A Dividend King with 64 Years of Raises
KO currently pays a quarterly dividend of $0.53 per share, giving it a yield of around 2.84%. That alone makes it one of the more reliable income plays in the market.
More telling is the streak. Coca-Cola has raised its dividend every year for 64 consecutive years. That puts it firmly in “Dividend King” territory — a label reserved for companies with 50 or more straight years of dividend growth.
Few companies anywhere can match that track record.
The stock itself has held up well in rough markets. During the 2022 bear market, when the S&P 500 fell roughly 18%, KO returned nearly 11%.
Analysts Bullish, Price Target Points to Further Upside
On Wall Street, the view on KO is broadly positive. Of 15 analysts covering the stock, 14 have it rated Buy and one has it at Hold. The consensus is a Strong Buy.
The average price target sits at $85.07, implying around 8.7% upside from current levels.
KO trades at a market cap of approximately $321 billion. Its 52-week range runs from $65.35 to $82.00.
With markets volatile in 2026 — the Shiller P/E still elevated near 37, uncertainty around the Iran conflict and rising energy prices — defensive names like KO have attracted renewed attention.
Berkshire Hathaway (BRK.B), also flagged as a defensive play, returned 3% during the 2022 downturn versus the S&P’s 18% loss. It’s down about 4% this year, partly attributed to the leadership transition from Buffett to new CEO Greg Abel.
KO’s current price of $74.67 is up 7% year to date, with a day’s range of $74.63 to $75.69.
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