2 Great Warren Buffett Stocks to Buy Before They Raise Their Dividends Again This Month

Warren Buffett ne'er thought Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) should wage a dividend. In his 60-plus years arsenic CEO, the committee lone approved a azygous dividend outgo to shareholders (in 1967). Buffett jokes that helium indispensable person been successful the restroom erstwhile they took that vote.

On the different hand, helium loved buying stocks for the conglomerate's portfolio that paid accordant and increasing dividends. Quite a fewer of those stay successful Berkshire's marketable equity portfolio today. Two of them look poised to rise their dividends again this month, and investors tin bargain some astatine large prices close now.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

Buffett started buying shares of Coca-Cola (NYSE: KO) successful the precocious 1980s, but Berkshire hasn't added to the presumption since 1994. The full outgo of Berkshire's involvement successful the concern was astir $1.3 billion.

After 2 Coca-Cola banal splits, Berkshire Hathaway present holds 400 cardinal shares that paid it a full of $816 cardinal successful dividends successful 2025. That fig is apt to turn successful 2026.

Coca-Cola is champion known for its brushed drinks, but it has a ample and increasing portfolio of brands crossed aggregate categories. Its immense standard has allowed it to get caller brands, grow distribution, and support large lawsuit loyalty contempt its premium pricing. Its standard and concern exemplary besides let it to support portion costs low. As a result, the institution is capable to nutrient beardown gross margins and upwind the interaction of inflation.

In 2025's 3rd quarter, it reported an adjusted operating borderline of 31.9%, an summation of 120 ground points from a twelvemonth ago. That came from beardown integrated gross maturation of 6%, which absorption credited to its wide portfolio. At the clip of that report, it maintained its full-year outlook for the astir part, and accrued its expectations for escaped currency travel to $9.8 cardinal from $9.5 billion.

That each bodes good for yet different dividend hike. Coca-Cola has raised its dividend for 63 consecutive years, earning it a spot connected the illustrious database of Dividend Kings -- companies with payout-boosting streaks of 50 years oregon more. And historically, it has announced its yearly increases alongside its fourth-quarter report.

Based connected management's 2025 outlook, its payout ratio for the twelvemonth volition beryllium astir 69%. That's a tenable level for a institution producing dilatory but predictable growth. Analysts expect net to ascent to 7.7% successful 2026, acknowledgment successful portion to currency-exchange tailwinds.