Legendary investor Warren Buffett has achieved impressive results throughout his career. His company from 1964 to 2022 Berkshire Hathaway Inc. (NYSE:BRK) posted a total return of 3,787,464%, dwarfing the S&P 500’s 24,708% return over the same period.
In addition to collecting stocks that have gone up in value, Buffett also collects lots of shares.
Buffett famously said, “If you don’t find a way to make money while you sleep, you’ll work until you die.”
Don’t miss it.
Many companies in Buffett’s portfolio pay dividends to shareholders. Perhaps the most famous Coca Cola Co. (NYSE: KO )
Buffett began buying Coca-Cola shares in the late 1980s. Today, Berkshire owns 400 million shares worth $23.1 billion.
It’s no secret that Buffett was a fan of soft drinks. “If I eat 2,700 calories a day, it’s a quart of Coca-Cola,” he once said.
Above all, Buffett has unwavering faith in the company’s business.
“If you give me $100 billion and you say take over the leadership of Coca-Cola in the world, I’m going to give it back and it can’t be done,” he said.
That confidence is paying off handsomely in the form of tangible income. In the year In 2022, Coca-Cola paid 44 cents per share in four quarterly quarters — or $1.76 per share annually. Considering that Berkshire owns 400 million shares of Coca-Cola, it collected $704 million in dividends from the company last year.
But you don’t have to be the Oracle of Omaha to profit from the beverage giant.
Growing distribution from Coca-Cola
By 2022, Coca-Cola would pay 44 cents per share quarterly. But the payment still hasn’t stopped. In the year In February 2023, Coca-Cola’s board approved a 4.6 percent increase in its quarterly dividend to 46 cents.
This marked the company’s 61st consecutive annual profit growth.
Despite the ups and downs of the world economy over the past six decades, Coca-Cola shareholders have received huge dividend checks every year.
Coca-Cola follows a quarterly distribution schedule. If you want to collect $1,000 per month from the company, you’ll be looking at $3,000 per quarter. And that means you need to own 6,521.74 shares of the company. This is calculated by dividing $3,000 by the quarterly payment of $0.46.
And since Coca-Cola is currently trading at $57.81 per share, 6,521.74 shares means the stock is worth about $377,022.
If you aim to make $200 per month or $600 per quarter, you need 1,304.35 shares ($600/$0.46), or $75,404 worth of Coca-Cola stock (1,304.35 x $57.81).
Despite the company’s history of strong dividend growth, shares can still be volatile. Year-to-date, Coca-Cola’s stock is down about 8 percent.
Morgan Stanley analyst Dara Mohsenian says better days are ahead for the beverage company. The analyst has an overweight rating on Coca-Cola and a price target of $70 — 21% above where the stock currently sits.
Remember, stocks can fluctuate wildly, and even top analysts aren’t 100% accurate. So always do your thorough research before jumping in.
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This column How to make $1,000 a month from Warren Buffett’s favorite dividend stocks It appeared at first Benzinga.com
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