Warren Buffett’s Dividend Picks: Domino’s and Coca-Cola

Now, you might not hear much about dividends when folks are waxing poetic about Warren Buffett’s fortune-making genius, but let me tell ya, when it comes to the good ol’ Berkshire Hathaway, they’ve got dividends sneaking in there like a snake in the grass. Last year, that mighty portfolio of stocks raked in a tidy sum of $5.2 billion just from those delightful little dividend payments. To say ol’ Warren knows the value of a decent income investment would be like saying a fish knows how to swim. So, in light of that, let’s take a gander at two stocks from the Berkshire stash that oughta be keeping you up at night-if you’re not already. The first being that pizza maker with a pie for a logo, Domino’s, and second, the fizzy king of refreshment, Coca-Cola.

1. Domino’s Pizza

Now, of the two, Domino’s here is the new kid on the block-just started hanging around Berkshire’s porch not too long ago, in fact. They first dropped a few bills on that pizza company in late 2024, then, not content with just a few crumbs, went ahead and piled on a heap more. By the end of June, Warren and his crew had themselves a little more than 2.6 million shares, valued at a whopping $1.2 billion or so. Now that’s a whole lotta pizza, but don’t be fooled-it’s not just about the dough. Domino’s is a serious dividend-payer, slapping out quarterly payouts since 2013, and increasing ’em like clockwork. Most recently, back in February, they cranked it up by a savory 15%, bringing the payout to $1.74 a share. Doesn’t sound like much, but at a yield of nearly 1.5%, it’s a tad better than the average stock on the S&P 500, which is sittin’ around 1.2%. That’s a real nice taste of the good life for folks who like their income steady, like the crust on a good pizza.

But wait, there’s more to Domino’s than just a predictable dividend. They’ve been growing, like that pizza dough you throw in the air-bigger and bigger. Last quarter, their revenue bumped up by 4% year-over-year, nudging up to almost $1.15 billion. That’s a fine feat in a world where folks are watching their pennies like a hawk. Now, profits? They’ve been a little more unpredictable, bouncing up and down, mostly thanks to a stake in the Chinese franchisee. One quarter it’s up, the next it’s down-but the good news is, they’re still showing a profit, landing $131 million last quarter. So, while you may not wanna bet the farm on it, Domino’s is holding its own-and if they keep growing like this, those dividends might keep on comin’. The next payout? Mark your calendar for September 30, and make sure you’re holding those shares by September 15.

2. Coca-Cola

Now, if there’s a drink to wash down that pizza with, it’s gotta be Coca-Cola, right? A little fizz to tickle the tongue. It only makes sense that this bubbly giant would sit pretty alongside Domino’s in Berkshire’s grand collection. Buffett’s been smitten with Coca-Cola since 1988-back when folks thought the world was still flat and all you needed was a good Coke to keep you going. At this point, Coca-Cola is practically a cornerstone of Berkshire Hathaway, sitting at a market cap of $27.3 billion and comprising nearly 9% of all the stock that ol’ Warren holds in that part of the world. Don’t let that soda be too sweet to ignore-it’s one of Berkshire’s top dogs.

As for those dividends, well, Coca-Cola’s been nothing short of a regular fount of gold for income investors. The company has raised its dividend for 63 straight years-now, that’s loyalty. And let me tell ya, that’s not the kind of thing you find on every street corner. Most recently, they gave it a 5% bump, taking the quarterly payout up to $0.51 per share. At that rate, you’re looking at a yield of about 3%, which is a little richer than Domino’s. But it’s not just about the payout, oh no. Coca-Cola’s also bringing in the bucks, with revenue jumping 2% in the last quarter, and adjusted net income rising 4% to a solid $3.7 billion. They’re a lean, mean, profit-making machine, with a healthy net margin hovering near 30%. Analysts are predicting more of the same, with revenue and earnings inching up each year for the next few.

So, when’s the next payout? Well, Coca-Cola isn’t one to keep you waitin’ long. Their next quarterly check will be handed out on October 1, with shareholders of record from September 15 getting a slice of that $0.51 payout. And at the most recent share price, that’s sittin’ pretty at about 3%. Nice little earner if you ask me.

There ya go, folks. Two dividend darlings from the mighty Buffett’s portfolio-one with pizza in the name, and the other with a soda pop in hand. Both offer steady dividends, and while Domino’s might be the newcomer, Coca-Cola’s a seasoned veteran. Pick your poison, but I’d say there’s enough to go around. 🍕

2025-09-08 13:32

1. Domino’s Pizza

2. Coca-Cola

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