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This stock to pay Warren Buffett $200 million in dividends on July 1; Should you buy?
Coca-ColaCoca-Cola(US:KO) Finboldยท2025-05-31 13:23

Core Insights - Warren Buffett's long-term investment in Coca-Cola continues to yield significant dividends, with Berkshire Hathaway set to receive over $200 million in dividends in July 2025 [1][2] - Coca-Cola has maintained a consistent dividend performance, marking its 63rd consecutive yearly increase with a recent 5.2% raise [5] - The company projects solid growth potential, with organic revenue growth of 5% to 6% and EPS growth of 2% to 3% for 2025, outperforming competitors like PepsiCo [6] Dividend Performance - Coca-Cola's upcoming quarterly dividend is $0.51 per share, leading to a total of $204 million for Buffett on July 1, 2025 [1][2] - The dividend payout ratio is a sustainable 69%, based on projected earnings per share of $2.88 for 2024 and up to $2.95 for 2025 [5] - The company has a dividend yield of approximately 2.8%, making it attractive for income-focused investors [9] Financial Performance - Coca-Cola's first-quarter 2025 results showed a 6% increase in organic revenue, meeting the top of its forecast range, while EPS rose 1% year-over-year despite currency challenges [7] - The company reaffirmed its full-year guidance, indicating resilience amid broader market uncertainties [8] Market Position - Coca-Cola shares have performed in line with the broader market, recently closing at $72, reflecting a less than 1% increase [3] - The company's strong global brand recognition and fundamentals support its growth potential, distinguishing it from peers facing weaker consumer demand [6]