These two dividend stocks could keep raising their payments annually for years to come.
Warren Buffett never thought Berkshire Hathaway (BRK.A +0.74%) (BRK.B +0.80%) should pay a dividend. In his 60-plus years as CEO, the board only approved a single dividend payment to shareholders (in 1967). Buffett jokes that he must have been in the restroom when they took that vote.
On the other hand, he loved buying stocks for the conglomerate’s portfolio that paid consistent and growing dividends. Quite a few of those remain in Berkshire’s marketable equity portfolio today. Two of them look poised to raise their dividends again this month, and investors can buy both at great prices right now.
Image source: The Motley Fool.
1. Coca-Cola
Buffett started buying shares of Coca-Cola (KO +0.66%) in the late 1980s, but Berkshire hasn’t added to the position since 1994. The total cost of Berkshire’s stake in the business was about $1.3 billion.
After two Coca-Cola stock splits, Berkshire Hathaway now holds 400 million shares that paid it a total of $816 million in dividends in 2025. That figure is likely to grow in 2026.
Coca-Cola is best known for its soft drinks, but it has a large and growing portfolio of brands across multiple categories. Its huge scale has allowed it to acquire new brands, expand distribution, and maintain great customer loyalty despite its premium pricing. Its scale and business model also allow it to keep unit costs low. As a result, the company is able to produce strong gross margins and weather the impact of inflation.
Today’s Change
(0.66%) $0.52
Current Price
$79.03
Key Data Points
Market Cap
$340B
Day’s Range
$78.26 – $79.20
52wk Range
$63.66 – $79.20
Volume
14K
Avg Vol
18M
Gross Margin
61.55%
Dividend Yield
2.58%
In 2025’s third quarter, it reported an adjusted operating margin of 31.9%, an increase of 120 basis points from a year ago. That came from strong organic revenue growth of 6%, which management credited to its broad portfolio. At the time of that report, it maintained its full-year outlook for the most part, and increased its expectations for free cash flow to $9.8 billion from $9.5 billion.
That all bodes well for yet another dividend hike. Coca-Cola has raised its dividend for 63 straight years, earning it a place on the illustrious list of Dividend Kings — companies with payout-boosting streaks of 50 years or more. And historically, it has announced its annual increases alongside its fourth-quarter report.
Based on management’s 2025 outlook, its payout ratio for the year will be about 69%. That’s a reasonable level for a company producing slow but predictable growth. Analysts expect earnings to climb to 7.7% in 2026, thanks in part to currency-exchange tailwinds.
Even if management drops the payout ratio a little bit, investors could see a dividend bump in line with the 5% increase they have seen in each of the last few years when Coca-Cola announces Q4 earnings on Feb. 10.
Today, the stock is trading at about 24 times forward expected earnings, which is a fair price to pay for a wonderful business.
2. Domino’s Pizza
Domino’s Pizza (DPZ +0.45%) was a relatively recent addition to the Berkshire portfolio. Buffett and his team started acquiring shares in mid-2024, and bought the stock for five straight quarters. We’ll have to wait until Berkshire’s next 13-F filing with the Securities and Exchange Commission in mid-February to see if he made it six straight quarters ahead of his retirement.
While Buffett hasn’t shared much publicly about why he likes Domino’s, the appeal is plain to see. Management has invested heavily in the brand over the last decade-plus, and that has enabled it to produce strong same-store sales growth relative to its peers in recent years.
It has a huge scale with thousands of stores both domestically and internationally, giving it a cost advantage that it passes on to its franchisees through its supply chain business. That makes it attractive for franchise owners.
Instead of fighting restaurant delivery apps, it struck deals with them while maintaining its best offers for its direct and most loyal customers. It has also ramped up its fortressing strategy, building multiple stores near one another to drive awareness and increase convenience, which has successfully increased higher-margin carryout orders over the last decade. Carryout sales increased by 8.7% in the third quarter relative to a 2.5% increase in delivery sales.
Domino’s Pizza
Today’s Change
(0.45%) $1.78
Current Price
$395.21
Key Data Points
Market Cap
$13B
Day’s Range
$390.98 – $396.50
52wk Range
$382.47 – $500.55
Avg Vol
612K
Gross Margin
39.81%
Dividend Yield
1.76%
Management remains confident about the future. CEO Russell Weiner says he’s certain Domino’s can meet its goal of 3% same-store sales growth in 2026 and beyond. Combined with mid-single-digit unit growth, continued improvements in gross margin, and the benefits of scale, Domino’s should produce strong earnings growth for years to come. Analysts currently expect an 11% rise in earnings per share for 2026.
At the current share price and payout level, its dividend yields just 1.7%, but its payout ratio of less than 40% of analysts’ expected 2025 earnings gives management plenty of room to raise the distribution. It has increased the dividend at an average rate of 17.4% over the past five years. Another hike in the mid-teens may be coming when the company reports its fourth-quarter results on Feb. 23.
With the stock trading at less than 21 times analysts’ expectations for 2026 earnings, Domino’s shares look like a good value right now, and the company could deliver double-digit percentage dividend growth for years to come.