Dividend Yield: 2.8%
Sure, it’s no longer the absolute favorite of Berkshire Hathaway (NYSE:BRK.A, BRK.B) — that honor now belongs to Wells Fargo (NYSE:WFC) — but it remains one of Warren Buffett’s longest and largest holdings.
The beverage giant is a bastion of longevity — it’s been around for more than a century, it has paid a dividend since 1920, and it has improved that payout for more than 50 consecutive years. Its product line has expanded well beyond its bread-’n'-butter cola offering, including Powerade energy drinks, Dasani water and Minute Maid juice drinks. Coca-Cola also has a global reach, offering their products in over 200 countries.
With free cash flow of $8 billion last year and a payout ratio of 52%, investors can expect to see Coca-Cola pad its dividend — currently yielding 2.8% — for the foreseeable future.