12 Best Warren Buffett Stock Picks For Beginners

9. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 81

Berkshire Hathaway’s Stake Value: $24,904,000,000

Warren Buffett has been investing in The Coca-Cola Company (NYSE:KO) since 1988, making it one of the best Warren Buffett stock picks for beginners. On April 22, UBS analyst Peter Grom reaffirmed a Buy rating on KO with a price target of $73. UBS is expecting Coca-Cola’s Q1 earnings to come in at $0.71 per share, just a cent below the consensus. With its financial stability, 63 consecutive years of dividend increases, and a solid outlook, Coca-Cola remains a strong pick for investors.

On February 20, The Coca-Cola Company (NYSE:KO) approved a 5.2% increase in its quarterly dividend, raising it from 48.5 cents to 51 cents per share. The first quarter dividend was paid on April 1, to shareholders listed by March 14. In 2024, Coca-Cola returned $8.4 billion in dividends, bringing the total dividends paid to shareholders since 2010 to $93.1 billion.

The Coca-Cola Company (NYSE:KO) net revenues for the fourth quarter rose 6%, reaching $11.5 billion, driven by a 14% jump in organic revenues. For the full year, revenues grew 3% to $47.1 billion, with organic growth at 12%. The company saw a 23.5% improvement in operating margin for the quarter, but a decline for the year to 21.2%, partly due to a $3.1 billion charge from the fairlife acquisition. EPS for the quarter grew 12% to $0.51. Cash flow from operations decreased to $6.8 billion, due to a large IRS deposit, but free cash flow excluding this deposit increased to $10.8 billion, reflecting strong business performance.

Among the hedge funds tracked by Insider Monkey in Q4 2024, The Coca-Cola Company (NYSE:KO) was part of 81 public stock portfolios, up from 69 in the preceding quarter. Ken Griffin’s Citadel Investment Group holds a prominent stake with 10 million shares worth $623.75 million.