Meet the Stock That Just Paid Warren Buffett $184 Million in Quarterly Dividends, and Another That's About to Pay Him $248 Million

Warren Buffett makes money without even trying. How? His Berkshire Hathaway (BRK.A -0.76%) (BRK.B -0.69%) portfolio is loaded with dividend stocks.

Some of Berkshire's holdings don't generate an enormous amount of dividend income, but a few definitely do. Meet the stock that just paid Warren Buffett $184 million in quarterly dividends, and another that's about to pay him nearly $248 million.

Have a Coke and a smile

Buffett has been a big fan of Coca-Cola (KO) for a long time. He first led Berkshire to initiate a position in the food and beverage giant in 1988. The Oracle of Omaha revealed in the past that he drinks five cans of either Diet Coke or Cherry Coke each day. He told CNBC's Becky Quick earlier this year, "I'm happier when I'm eating hot fudge sundaes or drinking Coke."

The legendary investor has another reason to be happy with Coke, though: Berkshire Hathaway just received a huge payment from the company.

Coca-Cola paid its fourth-quarter dividend of $0.46 per share on Dec. 15. Since Berkshire owns 400 million shares, it made a hefty $184 million. That amounts to $736 million on an annualized basis.

Buffett can probably look forward to making even more money from Coca-Cola next year. The company has increased its dividend for 61 consecutive years, making it a solid member of the elite group of stocks known as Dividend Kings.

Buffett can bank on it

Bank stocks have been a longtime favorite for Buffett as well. His top bank stock these days is Bank of America (BAC -0.21%), which ranks as the second-largest position in Berkshire Hathaway's portfolio.

If you think that Berkshire is hauling in a lot of money from its Coca-Cola dividends, you'll probably be blown away by how much it will soon make from Bank of America. The big bank is scheduled to pay its fourth-quarter dividend on Dec. 29, to all shareholders of record as of Dec. 1.

BofA's dividend payment will be $0.24 per share. Multiplying this amount times Berkshire's 1,032,852,006 shares owned at the end of the third quarter of 2023 comes to a lofty total of nearly $248 million. On an annualized basis, that translates to over $991 million.

Buffett can probably count on increased dividend payouts from Bank of America next year as well. Although the company's track record isn't as impressive as Coca-Cola's, it has increased the dividend for 10 consecutive years.

More than just dividends

Granted, neither Coke nor BofA have been big winners this year. The shift in investors' focus to growth stocks didn't work in Coca-Cola's favor. Bank of America was negatively impacted by the banking crisis earlier in 2023. However, I think that both stocks could perform well in the new year.

The so-called "Magnificent Seven" stocks have largely powered the stock market's gains this year. But if a new bull market for the S&P 500 becomes more broad based, the rising tide should lift if not all boats, most of them. I suspect that Coca-Cola and Bank of America will be among the beneficiaries.

I'm especially bullish about Bank of America over the next few years. The stock is a bargain, with shares trading at a little over 10x expected earnings. BofA continues to innovate and should successfully navigate the technology changes in the banking industry.

Berkshire Hathaway (and by extension Buffett) will almost certainly continue to receive attractive dividends from Coca-Cola and Bank of America for a long time to come. These stocks could provide more than just dividends, too.