Coca-Cola Co. (KO – Get Report) has paid a dividend religiously since 1920 and has increased that dividend each year for the past 55 years, according to the company. It’s most recent dividend yield came in at a respectable 3.2% for 2017, and FactSet analysts predict that yield will grow to 3.6% for 2018, 3.8% for 2019 and 4.1% for 2020.
Buffett first invested in Coca-Cola in 1988, when the dividend was just 30 cents. That dividend today is 30% larger. In a letter to Berkshire shareholders the year he invested in Coke, Buffett said he intended to hold onto the stock “for a long time.”
Watch below what Coca-Cola CEO James Quincey just told TheStreet’s Executive Editor Brian Sozzi about Warren Buffett
Apple Inc. (AAPL – Get Report) may not seem like it’s a made-for-retirement stock, but it could be worth taking another look. Sure, it’s a tech company, but it’s tough to imagine a world in which the majority of people don’t have an iPhone. Part of this company’s allure is that it’s essentially hooked a user base with staggering loyalty
Plus, Buffett has said he sees Apple, not Amazon.com Inc. (AMZN – Get Report) or Alphabet Inc. (GOOGL – Get Report) , becoming the world’s first trillion-dollar company. At an $854 billion market cap, it’s not too far off.
Plus – though Apple isn’t known as a dividend company – its dividend yield is expected to grow to 2% by 2020 from 1.6% in 2017, according to FactSet. In addition, the stock has returned 20% over the last year, far outpacing the S&P 500’s 11% gain in the same time frame.