Warren Buffett's Berkshire Hathaway continues to hold 400 million shares of Coca-Cola (KO), unchanged since the 1990s, with expected dividends of approximately $848 million for 2026.
Strong Dividend Performance
The quarterly dividend of $0.53 per share is paid out consistently, yielding around 2.5%. Coca-Cola's record of increasing dividends spans 64 consecutive years, earning it the title of Dividend King. Buffett acknowledged this in past shareholder letters, emphasizing the reliability of Coca-Cola as a source of income.
Stock Performance and Market Position
On Friday, Coca-Cola's stock opened at $83.93, close to its 52-week high of $84.14. The company boasts a market cap of $361 billion and a P/E ratio of 26.39. Coca-Cola's recent quarterly earnings surpassed analyst expectations, with an EPS of $0.86 compared to a consensus of $0.81, and revenues totaling $12.47 billion, up 11.4% year-over-year.
For FY 2026, Coca-Cola has provided guidance for an EPS between $3.24 to $3.27. The stock's 50-day moving average stands at $80.18, while the 200-day moving average is 76.72.
Institutional and Analyst Insights
Institutional ownership of Coca-Cola is considerable at 70.26%, with firms like QRG Capital Management increasing their stakes. In Q1, QRG added 76,998 shares, boosting their position by 20.2%. Other notable increases include Jump Financial, which lifted its stake by 450.5%, and Osterweis Capital Management, increasing its holdings by 548.2%.
Analyst sentiment remains positive, with a consensus rating of Moderate Buy. The average price target from 16 analysts is $86.88, indicating potential upside. Recent targets have been updated, with TD Cowen setting a $90.00 price target and Morgan Stanley offering a $89.00 target. Both JPMorgan and Deutsche Bank raised their respective targets as well.
