Warren Buffett and Berkshire Hathaway Own 2 Dividend Kings That Will Never Be Sold
Warren Buffett stepped down as CEO of Berkshire Hathaway (BRK-B) on December 31, 2025, after six decades leading the conglomerate he transformed from a struggling textile mill into a $1 trillion empire. The “Oracle of Omaha” left his successor, Greg Abel, with a very concentrated portfolio: more than 65% of Berkshire’s $381 billion portfolio is invested in just six stocks. Abel, who has served as vice chair overseeing non-insurance operations, officially took over as chief executive on January 1, 2026. At 95 years old, Buffett isn’t fully retiring—he will remain chair of the board and plans to continue coming to the Omaha headquarters as much as before. However, he has stated he will be “going quiet” and leaving all decision-making to Abel. While that is likely the case, it is a solid bet that two of the Dividend Kings that are among Buffett’s favorite holdings in the Berkshire Hathaway portfolio will never be sold.
Quick Read
-
Berkshire Hathaway concentrates over 65% of its portfolio in just six stocks, which is a strategy most portfolio managers would reject outright, yet it keeps working.
-
Greg Abel has inherited control of that $381 billion portfolio, and two Dividend King stocks in it are positioned as permanent holdings that will never be sold.
-
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)
Long-time investors and Buffett mavens are familiar with this quote: “His favorite holding for an S&P 500 stock is forever.” So it’s not surprising to report that for all the success and stature Berkshire Hathaway has in the investment world, six top companies make up almost 65% of the portfolio’s total holdings. While much more concentrated than most portfolio managers would ever consider, the strategy has worked for Berkshire Hathaway investors for years and will likely continue to do so.
Two stocks in the Berkshire Hathaway portfolio are members of the exclusive Dividend Kings club. The Dividend Kings are the 56 companies as of 2026 that have raised their dividends for at least 50 years, a testament to their consistency and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall returns. Unlike the Dividend Aristocrats, the Dividend Kings do not have to be members of the S&P 500.
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)
Here are the two Dividend Kings Buffett owns that will likely never be sold.
Coca-Cola
This American multinational corporation, founded in 1892, remains a top long-time holding of Buffett. He owns a massive 400 million Coca-Cola (NYSE: KO) shares, which is 9.3% of the float and 9.9% of the Berkshire portfolio. The stock comes with a dependable 2.60% dividend yield.
Coca-Cola is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the portfolio features 20 billion-dollar brands, including:
-
Diet Coke
-
Coca-Cola Light
-
Coca-Cola Zero Sugar
-
Caffeine-free Diet Coke
-
Cherry Coke
-
Fanta Orange
-
Fanta Zero Orange
-
Fanta Zero Sugar
-
Fanta Apple
-
Sprite
-
Sprite Zero Sugar
-
Simply Orange
-
Simply Apple
-
Simply Grapefruit
-
Fresca
-
Schweppes
-
Dasani
-
Fuze Tea
-
Glacéau Smartwater
-
Glacéau Vitaminwater
-
Gold Peak
-
Ice Dew
-
Powerade
-
Topo Chico
-
Minute Maid
Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. The company owns 19.5% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results.
TD Cowen has a Buy rating with a $90 target price.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a multinational American corporation specializing in pharmaceuticals, biotechnology, and medical devices. With shares trading at 14.5 times forward earnings and paying a 2.32% dividend yield, this diversified healthcare giant is a strong buy at current prices.
Johnson & Johnson is among the most conservative of the major pharmaceutical companies, with a diverse product portfolio and a well-established brand. The company researches, develops, manufactures, and sells a range of healthcare products focused on human health and well-being. The company carries a payout ratio of just 47%, meaning it is paying out less than half its earnings as dividends, which is quite a healthy cushion.
It operates through two segments. The Innovative Medicine segment is focused on various therapeutic areas, including:
Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTech segment encompasses a diverse portfolio of products used in orthopedics, surgery, interventional solutions, cardiovascular intervention, and vision care. It also offers a commercially available intravascular lithotripsy platform for the treatment of coronary artery disease and peripheral artery disease.
HSBC has a Buy rating with a $265 target price.
If You’ve Been Thinking About Retirement, Pay Attention (sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:
-
Get Matched with Vetted Advisors
-
Choose Your Fit
Why wait? Start building the retirement you’ve always dreamed of. Get started today! (sponsor)