Latest news with #CocaCola
Yahoo
a day ago
- Business
- Yahoo
2 Magnificent Dividend Stocks to Buy in June
Coca-Cola is one of the most resilient stocks to hold for the long term, having paid a growing dividend for 63 years. Home Depot has ample opportunities to grow earnings and dividends by serving a $1 trillion home improvement market. 10 stocks we like better than Coca-Cola › Dividend stocks can be a great antidote to market volatility. While these stocks can still experience dips with the broader market, the regular cash deposits made into your account can help you stay optimistic about your financial future. If you're thinking about adding reliable dividend payers to your portfolio right now, here are two industry-leading businesses that could potentially pay you for the rest of your life. Coca-Cola (NYSE: KO) is a staple brand for many households. While it doesn't offer a lot of growth, the stock has held up relatively well against market volatility in recent years. It has an excellent dividend payment record and currently offers an attractive yield that is double the S&P 500 average. At the current quarterly payout of $0.51, the stock's forward dividend yield is 2.85%. The company just raised the quarterly payment for the 63rd consecutive year, indicating a resilient business through economic cycles. Coca-Cola is more than its namesake brand. It owns dozens of brands across juices, tea, energy, and water, so it offers a beverage product for just about any consumer preference. Its product diversity also helps the business generate steady sales year to year. Despite economic uncertainty in the first quarter, Coca-Cola's adjusted revenue grew 6% year over year, with unit case volume up 2%. Tariffs could affect Coca-Cola's financial results this year, but only marginally. Based on what management has seen so far, it expects adjusted earnings to increase 7% to 9% in 2025. Given its trailing 12-month payout ratio of 77%, more earnings growth should support further increases in the dividend. This rate of growth is consistent with management's long-term expectations. While Coca-Cola is a global brand, it still has significant opportunities in emerging markets, where people consume fewer commercial beverage products than in developed countries. The company raised the dividend by 5% this year, and that's a reasonable expectation for its long-term growth in revenue, earnings, and dividends. Coca-Cola stock has been a favorite holding of Warren Buffett for many years and can certainly help you grow your savings. Home Depot (NYSE: HD) is the leading home improvement retailer. Favorable homeownership trends have driven rising demand for its services over the years. This has made the stock a rewarding investment. A $10,000 investment 20 years ago would be worth $151,000 today, including dividend reinvestment. Home Depot has been a solid dividend payer, and it currently offers an attractive yield. Its quarterly payment currently stands at $2.30, bringing the forward dividend yield to an above-average 2.49%. While the housing market can swing with the economy and interest rates, Home Depot has weathered these cycles well. The housing market has been relatively weak the past few years, but Home Depot has maintained steady sales and earnings. Over the past year, it paid out 61% of its earnings in dividends, providing plenty of wiggle room to sustain the dividend in a soft year. Another quality that makes Home Depot a solid income investment is that its average customer earns an average annual income of $110,000, with 80% of its customers owning their home. This can explain why Home Depot reported healthy demand for small home projects last quarter, despite economic uncertainty. The company reported a slight increase in U.S. comparable store sales over the year-ago quarter. Management expects full-year adjusted earnings to be down approximately 2% over fiscal 2024. But in the long term, investors can expect Home Depot to deliver respectable returns. The opportunity in the home improvement market is worth $1 trillion, which leaves a lot of room for growth for a business with annual sales of $162 billion. Returns over the next 20 years will likely be more modest than in the previous few decades, but Home Depot has plenty of opportunities to grow sales and pay dividends for many years. Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy. 2 Magnificent Dividend Stocks to Buy in June was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Why Does Warren Buffett Love Coca-Cola Stock? He Gave a Very Clear Answer Which Every Investor Should Understand.
Buffett is known as a value investor, but choosing a great business is much more important to him than price. Coca-Cola has a well-established brand name that makes selling its products easy. It has a high return on capital, with a capital-light and agile business. 10 stocks we like better than Coca-Cola › Is Coca-Cola (NYSE: KO) Warren Buffett's favorite stock? It might be, and it's at least one of his favorites. He has praised it many times for a number of its features, and he's used it on several occasions to demonstrate what he thinks constitutes a great business. Most Buffett fans know that he has said that his favorite holding period is forever. But did you know that when he said that, he was talking about Coca-Cola stock? He's held true to that view, repeating several times that he would never sell Coca-Cola stock. He provided a clear and detailed explanation of what's so great about Coca-Cola at last month's annual shareholders' meeting, and every investor who wants to be successful should pay close attention to what he said. Berkshire Hathaway bought shares of Coca-Cola stock for the first time in 1988, making it his longest-held stock. In that year's shareholders' letter, Buffett wrote his famous quote: "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever." Buffett has called himself a "business-picker," not a "stock-picker." He tells investors to avoid short-term dips and gains and to focus on what makes a great business because a great business can withstand the test of time and will ultimately reward investors. As a Dividend King that's raised its dividend for 63 years consecutively through all kinds of conditions, Coca-Cola has certainly proven itself. This year, Buffett gave a long commentary on how Coca-Cola's model makes it such a fabulous business: It's always better to make a lot of money without putting up anything than it is to make a lot ofmoney by putting up a lot of money. And so a business that takes no capital to speak of, Coca-Cola, the finished product, which has gone through bottling companies and everything, that takes a lot of capital. But in terms of selling the syrup or the concentrate that goes to it, it doesn't take a lot of capital. So one is a fabulous business and one is a -- it depends where it is and everything like that. Coca-Cola is popular every place. But some places -- I mean, if you're in the bottling business, it costs real money. You have real trucks out there and you have all kinds of machinery and you have capital expenditures coming up. And we've got businesses that take very little capital that make really high returns on capital. Investors often think of Buffett as a value investor, but he's really the ultimate contrarian investor. If you take a look at the Berkshire Hathaway portfolio, it owns few so-called hot stocks and many stocks investors never talk about, such as Moody's and Chubb. These are cash-strong businesses with products that are always in demand, companies that are well-established and stable, and companies that don't need to put in a lot money to make a lot of money. Buffett talks about these qualities far more often than telling investors to get a good deal, recommending them to buy great companies at fair prices instead of vice versa. When explaining what makes a great business, Buffett has often focused on a company's return on capital. Being able to make a lot of money without having to invest a lot of money creates high profits and generates a robust, cash-generating business cycle. For Coca-Cola, that's tied into its brand name, which is such an important part of its moat, or competitive advantage. Coca-Cola is not in the bottling business; it makes syrups and concentrates that it sells to its bottling partners, a much less capital-intensive business. The bottling partners add water and other components to create the finished product. Most of its end-user products are made locally through this system. It sells its concentrates to local business partners who make the final products on-site and know people love Coke's beverages. Some final products are the cans and bottles sold in supermarkets and the like, and some final products are sold as drinks in dining establishments. The company has more than 200 bottling partners and calls this network the Coca-Cola system. CEO James Quincey has noted that because of the company's local production, Coke has less exposure to the tariff situation. The tariff program keeps changing, creating volatility for U.S. companies that rely on imports. But Coca-Cola has a concentrate facility in the U.S., and because it's such a large company with many parts -- it has 950 production facilities worldwide -- it has leverage with suppliers and the ability to change things to its benefit. This is the kind of resilience that Buffett prizes, and it comes from being agile instead of bogged down with capital-heavy assets. This is what Buffett means when he talks about great businesses, and these are the kinds of businesses that can last and create long-term shareholder value. Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Moody's. The Motley Fool has a disclosure policy. Why Does Warren Buffett Love Coca-Cola Stock? He Gave a Very Clear Answer Which Every Investor Should Understand. was originally published by The Motley Fool
Globe and Mail
a day ago
- Business
- Globe and Mail
Why Does Warren Buffett Love Coca-Cola Stock? He Gave a Very Clear Answer Which Every Investor Should Understand.
Is Coca-Cola (NYSE: KO) Warren Buffett's favorite stock? It might be, and it's at least one of his favorites. He has praised it many times for a number of its features, and he's used it on several occasions to demonstrate what he thinks constitutes a great business. Most Buffett fans know that he has said that his favorite holding period is forever. But did you know that when he said that, he was talking about Coca-Cola stock? He's held true to that view, repeating several times that he would never sell Coca-Cola stock. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » He provided a clear and detailed explanation of what's so great about Coca-Cola at last month's annual shareholders' meeting, and every investor who wants to be successful should pay close attention to what he said. A stock to hold forever Berkshire Hathaway bought shares of Coca-Cola stock for the first time in 1988, making it his longest-held stock. In that year's shareholders' letter, Buffett wrote his famous quote: "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever." Buffett has called himself a "business-picker," not a "stock-picker." He tells investors to avoid short-term dips and gains and to focus on what makes a great business because a great business can withstand the test of time and will ultimately reward investors. As a Dividend King that's raised its dividend for 63 years consecutively through all kinds of conditions, Coca-Cola has certainly proven itself. A business that can last forever This year, Buffett gave a long commentary on how Coca-Cola's model makes it such a fabulous business: It's always better to make a lot of money without putting up anything than it is to make a lot of money by putting up a lot of money. And so a business that takes no capital to speak of, Coca-Cola, the finished product, which has gone through bottling companies and everything, that takes a lot of capital. But in terms of selling the syrup or the concentrate that goes to it, it doesn't take a lot of capital. So one is a fabulous business and one is a -- it depends where it is and everything like that. Coca-Cola is popular every place. But some places -- I mean, if you're in the bottling business, it costs real money. You have real trucks out there and you have all kinds of machinery and you have capital expenditures coming up. And we've got businesses that take very little capital that make really high returns on capital. Investors often think of Buffett as a value investor, but he's really the ultimate contrarian investor. If you take a look at the Berkshire Hathaway portfolio, it owns few so-called hot stocks and many stocks investors never talk about, such as Moody's and Chubb. These are cash-strong businesses with products that are always in demand, companies that are well-established and stable, and companies that don't need to put in a lot money to make a lot of money. Buffett talks about these qualities far more often than telling investors to get a good deal, recommending them to buy great companies at fair prices instead of vice versa. What's a great business? When explaining what makes a great business, Buffett has often focused on a company's return on capital. Being able to make a lot of money without having to invest a lot of money creates high profits and generates a robust, cash-generating business cycle. For Coca-Cola, that's tied into its brand name, which is such an important part of its moat, or competitive advantage. Coca-Cola is not in the bottling business; it makes syrups and concentrates that it sells to its bottling partners, a much less capital-intensive business. The bottling partners add water and other components to create the finished product. Most of its end-user products are made locally through this system. It sells its concentrates to local business partners who make the final products on-site and know people love Coke's beverages. Some final products are the cans and bottles sold in supermarkets and the like, and some final products are sold as drinks in dining establishments. The company has more than 200 bottling partners and calls this network the Coca-Cola system. Even more important today CEO James Quincey has noted that because of the company's local production, Coke has less exposure to the tariff situation. The tariff program keeps changing, creating volatility for U.S. companies that rely on imports. But Coca-Cola has a concentrate facility in the U.S., and because it's such a large company with many parts -- it has 950 production facilities worldwide -- it has leverage with suppliers and the ability to change things to its benefit. This is the kind of resilience that Buffett prizes, and it comes from being agile instead of bogged down with capital-heavy assets. This is what Buffett means when he talks about great businesses, and these are the kinds of businesses that can last and create long-term shareholder value. Should you invest $1,000 in Coca-Cola right now? Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
a day ago
- General
- Yahoo
Complete guide to the Club World Cup stadiums 🏟️
The first FIFA Club World Cup is just around the corner and 12 venues will host matches over three weeks. Here you'll find everything you need to know about each one. 1️⃣ Mercedes-Benz Stadium 📸 Kevin C. Cox - 2025 Getty Images Advertisement City: Atlanta, Georgia Capacity: 75,000 Local team: Atlanta United Club World Cup matches: 16/06: Chelsea vs Los Angeles FC/Club América (15:00 local time) 19/06: Inter Miami vs Porto (15:00) 22/06: Manchester City vs Al Ain (21:00) 29/06: Round of 16 - 1B vs 2A (21:00) 01/07: Round of 16 - 1F vs 2E (21:00) 05/07: Quarterfinals - Winner of match 51 vs Winner of match 52 (12:00) Best local food: Georgia is known as the "Peach State", so get ready to find the best peach cobbler and peach barbecue sauce. Georgia is also the birthplace of Coca-Cola, invented in Atlanta in 1886. Advertisement Fun fact: It is the home of Atlanta United of Major League Soccer (MLS) and the Atlanta Falcons of the National Football League (NFL), Mercedes-Benz Stadium features a retractable roof and a 360-degree video screen with halo. 2️⃣ Bank of America Stadium 📸 Jacob Kupferman - 2025 Getty Images City: Charlotte, North Carolina Capacity: 75,000 Local team: Charlotte FC Club World Cup matches: 22/06: Real Madrid vs Pachuca (15:00 local time) 24/06: Benfica vs Bayern Munich (15:00) 28/06: Round of 16 - 1C vs 2D (16:00) 30/06: Round of 16 - 1E vs 2F (15:00) Best local food: Livermush is a regional delicacy made with pork liver, head cheese, and cornmeal, typically fried and served on white bread or biscuits. Advertisement Fun fact: The Charlotte stadium is the home of the Carolina Panthers since 1996 and has hosted several playoff games. 3️⃣ TQL Stadium 📸 Andy Lyons - 2025 Getty Images City: Cincinnati, Ohio Capacity: 26,000 Local team: FC Cincinnati Club World Cup matches: 15/06: Bayern Munich vs Auckland City (12:00 local time) 18/06: Pachuca vs Salzburg (18:00) 21/06: Mamelodi Sundowns vs Borussia Dortmund (15:00) 25/06: Borussia Dortmund vs Ulsan (18:00) Best local food: If you're going to Cincinnati, you have to try the Cincinnati chili. It's a meat sauce of Mediterranean inspiration, often spiced with cinnamon, cloves, allspice, and sometimes chocolate. It's served over spaghetti or hot dogs (called coneys). Advertisement You order it with a unique "way" system: 2: Chili and spaghetti; 3: Shredded cheese; 4: Onion or beans; 5: Onion and beans. Fun fact: The award-winning TQL Stadium was completed in 2021, but it has already hosted several memorable matches. The first visit of the US national team to the venue was in November that year, when they secured an impressive 2-0 win over Mexico in the FIFA World Cup Qatar 2022 qualifying. 4️⃣ Rose Bowl Stadium 📸 Ronald Martinez - 2025 Getty Images City: Los Angeles, California Capacity: 88,500 Local team: N/A Club World Cup matches 15/06: Paris Saint-Germain vs Atlético de Madrid (12:00 local time Advertisement 17/06: Monterrey vs Inter (15:00) 19/06: Paris Saint-Germain vs Botafogo (18:00) 21/06: River Plate vs Monterrey (18:00) 23/06: Atlético de Madrid vs Botafogo (12:00) 25/06: Urawa Red Diamonds vs Monterrey (18:00) Best local food: The French Dip sandwich was invented in Los Angeles in the early 20th century. It's a roast beef sandwich on French bread, dipped in its own juice. Fun fact: After celebrating its centenary, the Rose Bowl is one of the most iconic venues in American sports. It hosted the 1994 World Cup final and the 1999 Women's World Cup final. 5️⃣ Hard Rock Stadium 📸 Carmen Mandato - 2023 Getty Images Advertisement City: Miami, Florida Capacity: 65,000 Local team: N/A Club World Cup matches: 14/06: Al Ahly vs Inter Miami (20:00 local time) 16/06: Boca Juniors vs Benfica (18:00) 18/06: Real Madrid vs Al Hilal (15:00) 20/06: Bayern Munich vs Boca Juniors (20:00) 23/06: Inter Miami vs Palmeiras (21:00) 25/06: Mamelodi Sundowns vs Fluminense (15:00) 29/06: Round of 16 - 1D vs 2C (16:00) 01/07: Round of 16 - 1H vs 2G (15:00) Best local food: Key lime pie is the quintessence of Florida. A tangy and creamy pie made with key lime juice and a graham cracker crust. Fun fact: The Hard Rock Stadium, home of the Miami Dolphins, has hosted six Super Bowls over the years. 6️⃣ GEODIS Park 📸 Johnnie Izquierdo - 2025 Getty Images Advertisement City: Nashville, Tennessee Capacity: 30,000 Local team: Nashville SC Club World Cup matches 20/06: Los Angeles/Club América vs Espérance (17:00 local time) 24/06: Auckland City vs Boca Juniors (14:00) 26/06: Al Hilal vs Pachuca (20:00) Best local food: Nashville is famous for its Hot Chicken, a crispy and spicy fried chicken, fried and then slathered with a spicy paste or oil based on cayenne. Fun fact: This is the newest stadium to host Club World Cup matches this summer; it was completed in 2022. 7️⃣ MetLife Stadium 📸 Elsa - 2022 Getty Images City: East Rutherford, New Jersey Advertisement Capacity: 82,500 Local team: N/A Club World Cup matches: 15/06: Palmeiras vs Porto (18:00 local time) 17/06: Fluminense vs Borussia Dortmund (12:00) 19/06: Palmeiras vs Al Ahly (12:00) 21/06: Fluminense vs Ulsan (21:00) 23/06: Porto vs Al Ahly (21:00) 05/07: Quarterfinals - Winner of match 55 vs Winner of match 56 (16:00) 08/07: Semifinals - Winner of match 57 vs Winner of match 58 (15:00) 09/07: Semifinals - Winner of match 59 vs Winner of match (15:00) 13/07: Final - Winner of match 61 vs Winner of match (15:00) Best local food: New York-style pizza is a classic for a reason. With a thin and foldable crust, acidic tomato sauce, and creamy mozzarella, buy a slice from any corner store, fold it in half, and eat it on the go. Advertisement Fun fact: The MetLife Stadium is the home of the New York Giants and the New York Jets of the NFL, and it hosted the final of the 2016 Copa América Centenario, when Chile defeated Argentina on penalties. 8️⃣ Camping World Stadium 📸 Matt Stroshane - 2004 Getty Images City: Orlando, Florida Capacity: 65,000 Local team: N/A Club World Cup matches 24/06: Los Angeles FC/Club América vs Flamengo (21:00 local time) 26/06: Juventus vs Manchester City (15:00) 30/06: Round of 16 - 1G vs 2H (21:00) 04/07: Quarterfinals - Winner of match 53 vs Winner of match 54 (15:00) Best local food: Orlando may not have a single iconic dish like other places in the US, but its strong Southern roots make fried chicken and waffles a local classic. Advertisement Fun fact: Inaugurated 90 years ago, the Camping World Stadium has hosted artists like Elton John, Paul McCartney, and the Rolling Stones over the years. 9️⃣ Inter&Co Stadium 📸 Leonardo Fernandez - 2024 Getty Images City: Orlando, Florida Capacity: 25,000 Local team: Orlando City Club World Cup matches: 17/06: Ulsan vs Mamelodi Sundowns (18:00) 20/06: Benfica vs Auckland City (15:00) Best local food: Orlando also hosts a considerable Cuban population, so why not try a classic Cuban sandwich or the national dish, ropa vieja? Fun fact: This soccer-specific stadium is the home of Orlando City of the MLS and the Orlando Pride of the NWSL. 🔟 Lincoln Financial Field 📸 Ezra Shaw - 2004 Getty Images Advertisement City: Philadelphia, Pennsylvania Capacity: 69,000 Local team: N/A Club World Cup matches: 16/06: Flamengo vs Espérance (21:00) 18/06: Manchester City vs Wydad (12:00) 20/06: Flamengo vs Chelsea (14:00) 22/06: Juventus vs Wydad (12:00) 24/06: Espérance vs Chelsea (18:00) 26/06: Salzburg vs Real Madrid (21:00) 28/06: Round of 16 - 1A vs 2B (12:00) 04/07: Quarterfinals - Winner of match 49 vs Winner of match 50 (21:00) Best local food: Without a doubt, the Philly Cheesesteak. Thinly sliced ribeye steak, grilled onions (optional), and melted cheese (usually Cheez Whiz, American, or provolone) on a long hoagie roll. Advertisement Fun fact: The first ticketed event at Lincoln Financial Field was the high-profile friendly between European rivals Barcelona and Manchester United in August 2003, in which Patrick Kluivert had the honor of scoring the first goal at the stadium. 1️⃣1️⃣ Lumen Field 📸 Steph Chambers - 2023 Getty Images City: Seattle, Washington Capacity: 69,000 Local team: Seattle Sounders Club World Cup matches: 15/06: Botafogo vs Seattle Sounders (19:00 local time) 17/06: River Plate vs Urawa Red Diamonds (12:00) 19/06: Seattle Sounders vs Atlético de Madrid (15:00) 21/06: Inter vs Urawa Red Diamonds (12:00) Advertisement 23/06: Seattle Sounders vs Paris Saint-Germain (12:00) 25/06: Inter vs River Plate (18:00) Best local food: Being in the Pacific Northwest, seafood is a delight. The waters surrounding Seattle produce some of the freshest oysters in the US, including varieties like Kumamoto, Shigoku, and Hama Hama. Fun fact: The Lumen Field has been selected as one of the venues for the 2026 World Cup, and host country the United States will play one of their group stage matches at this iconic stadium. 1️⃣2️⃣ Audi Field 📸 Scott Taetsch - 2024 Getty Images City: Washington, DC Capacity: 20,000 Local team: DC United Advertisement Club World Cup matches: 18/06: Al Ain vs Juventus (21:00 local time) 22/06: Salzburg vs Al Hilal (18:00) 26/06: Wydad vs Al Ain (15:00) Best local food: The Half-Smoke is a legendary dish from Washington D.C. A spicy coarsely ground sausage, half pork, half beef (although variations exist). Heftier and spicier than a hot dog, it's considered the city's signature street food. Fun fact: The US national team has had mixed results when playing here, at Audi Field. In their first visit, they suffered a 1-0 defeat to Jamaica in 2019, before a resounding 7-0 win over Cuba in the Concacaf Nations League. This article was translated into English by Artificial Intelligence. You can read the original version in 🇪🇸 here. 📸 Brennan Asplen - 2024 Getty Images
Yahoo
2 days ago
- Business
- Yahoo
47% of Berkshire Hathaway's $276 Billion Warren Buffett-Led Portfolio Is Invested in 3 Dividend Stocks
Apple has developed an ecosystem of tech devices that its customers love and are willing to trade up to have. American Express has numerous earnings streams, and a younger cohort of cardholders is driving growth. Coca-Cola's business has proven resilient under pressure, and it reliably boosts its dividends. 10 stocks we like better than Apple › When Warren Buffett steps down as the CEO of Berkshire Hathaway at the end of this year, he will leave behind a legacy as perhaps the greatest investor of his time. As of the end of 2024, Berkshire Hathaway stock had gained an astounding 5,502,284% since Buffett took it over, and one way he turned it into a trillion-dollar company was by investing not in hot growth stocks, but strong value stocks. One feature Buffett loves in a stock is a dividend. Paying dividends suggests a company is mature, stable, and committed to rewarding shareholders -- all attributes that reinforce an investment thesis. Not all of the stocks in Berkshire Hathaway's $276 billion equity portfolio pay dividends, but most do. Its top three holdings -- Apple (NASDAQ: AAPL), American Express (NYSE: AXP), and Coca-Cola (NYSE: KO) -- all do, and together, they account for almost half of the portfolio. Let's consider what makes them such winners by Buffett's standards. Buffett only started a position in Apple in 2016, but it quickly moved into the top spot in the portfolio, reaching about 50% before Buffett and his team started selling some of it off last year. It now takes up a more reasonable amount of space, but it's still the largest position. Buffett said that Apple is an even better business than his perennial favorites, Coca-Cola and American Express, and he jested that CEO Tim Cook has made Berkshire Hathaway a lot more money than he ever has. Apple fans love its user-friendly, innovative, and tech-strong products, and it has created an ecosystem of devices and services that work together, generating loyalty and additional sales. Shoppers typically upgrade over time to newer versions of their favorite products, keeping them in the ecosystem. Like many tech giants, Apple is investing in artificial intelligence (AI), and it's developing its exclusive brand, Apple Intelligence, that offers a premium experience as part of the Apple package. Management expects AI to be an important growth driver for the next generation of Apple products. Investors have been worried about how tariffs will impact Apple's business, because iPhones are largely made in China, but management is working on long-term efforts to move more of its production to other countries to mitigate the impact of that part of the trade war. Apple's dividend doesn't have a particularly high yield -- at 0.5%, it's well below the average yield for the S&P 500. However, management has been hiking the payout slowly and steadily every year for more than a decade, demonstrating its commitment to rewarding shareholders. Buffett loves financial stocks, but American Express is his favorite. He appreciates its global brand and excellent management, and he tends to favor companies with varied earnings streams. As a bank that targets more prosperous individuals and small businesses, as well as a credit card network with fee-paying customers, American Express has several levers it can push to make money, and its excellent reputation and premium products attract affluent consumers whose finances tend to be more resilient even when the broader economy is under pressure. It has successfully captured a younger cohort of consumers who are driving its growth today and represent its future potential. Millennials and Gen Z customers accounted for 35% of its total U.S. consumer services billed business in the first quarter, and sales from that cohort increased by 14%, in comparison with a 7% overall gain. American Express continues to generate robust sales growth despite the challenging macroeconomic environment. Sales rose 8% year over year in the first quarter (on a currency-neutral basis) and earnings per share (EPS) rose 9% to $3.64. Delinquency ratios have stayed at 1.3%, with net write-offs at 2.1%.CEO Stephen Squeri credited that to the company's stellar risk management, which it has developed over its 150 years of operation, and its high-quality customers. American Express' dividend yields 1% at the current share price, and it's growing and reliable. Coca-Cola stock is currently the longest-tenured holding in Berkshire Hathaway's portfolio, and it's crushing the market this year. Investors consider it a safe stock because the company sells some of the world's favorite beverages, and people will continue to drink them even in times of economic uncertainty. With a portfolio of about 200 brands, it has something for everyone, although its core Coke-branded franchises drive its high sales. It has demonstrated strength over the past few years despite economic volatility, and after restructuring and slashing the brand portfolio from about 400 brands pre-pandemic, it has become more efficient and agile, and better able to weather the current storms. One factor that particularly favors Coca-Cola this year is that it has limited exposure to tariffs. Most of its products are produced and bottled in or near the countries in which they are sold, so it doesn't rely as much on imports or exports. CEO James Quincey said that the impact of new tariffs would be minimal and that the company has many ways to offset those higher costs. This is how investors can test the company's resilience, and it's a manifestation of what Buffett has long praised it for. The dividend is a major part of that, too. Coca-Cola is a Dividend King with 63 years of consecutive payout increases, a streak that's hard to top. At the current share price, the dividend yields 2.7% -- more than double the S&P 500's average yield. Coca-Cola isn't a growth stock, but it offers incredible value, reliable passive income, and protection for challenging times. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy. 47% of Berkshire Hathaway's $276 Billion Warren Buffett-Led Portfolio Is Invested in 3 Dividend Stocks was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
