I estimate the dividend could be reduced by as much as 35%.
At then end of March 2018, Warren Buffett owned a total of 43 publicly-traded stocks. Interestingly enough, 33 of these holdings pay a dividend, and several of them are high dividend stocks with yields in excess of 4%. We analyzed each of Warren Buffett’s stock picks that pay a dividend, starting with his highest-yielding dividend stocks. For each of Buffett’s investments, we review what the business does and the potential reasons behind Berkshire Hathaway’s attraction to the company.
While Coca-Cola does indeed possess many admirable qualities, including 55 consecutive years of rising dividends, that doesn’t necessarily mean that this popular dividend growth stock is a good fit for most income portfolios right now. Let’s take a look at the pros and cons of Coke to see if its best days are behind it, and more importantly if today’s valuation means investors could be better off not adding the company to a diversified portfolio at this time.