Warren Buffett Once Called These Stocks' Dividend Growth "as Certain as Birthdays." Here's How They're Doing.

• In his 2022 yearly letter, Warren Buffett invited readers to "peek down the curtain" to recognize Berkshire Hathaway's success.

• Almost immediately, helium singled retired 2 stocks.

• Three years aft helium called their dividend maturation "as definite arsenic birthdays," their payouts person risen by 21% and 91%.

• 10 stocks we similar amended than Coca-Cola ›

In his 2022 yearly missive to Berkshire Hathaway shareholders, Warren Buffett had nary shortage of bully quality to tout. Since helium took the helm of Berkshire successful 1964, the conglomerate had notched a 3,787,464% gain, compared to 24,708% for the S&P 500 -- capable to crook each $1 initially invested into $37,875.

Yet the archetypal fig helium brought up, isolated from calling his superior allocation decisions successful his 58-year tenure "so-so," was to mention 2 investments that helium said were cardinal to Berkshire's success.

These 2 companies, each of which Berkshire coincidentally had invested $1.3 cardinal into, present paid yearly dividends amounting to astir fractional of Berkshire's archetypal investment. This output connected outgo was, Buffett predicted, highly apt to turn acknowledgment to dividend hikes.

Of course, this was much than 3 years ago. What were the 2 dividend stocks that Buffett felt deserved a peculiar mention? And was his assurance successful them well-placed?

Buffett established his presumption successful brushed portion elephantine Coca-Cola (NYSE: KO) implicit a seven-year period, buying his 400 millionth stock successful August 1994.

He hasn't bought a stock since, but neither has helium sold. And there's a bully reason.

In 1994, Berkshire was receiving $75 cardinal a twelvemonth successful dividends from Coca-Cola. During the adjacent 28 years, arsenic the dividend accrued each year, that fig swelled to $704 cardinal successful 2022.

Today, Coca-Cola shares output 2.8%. But portion the $1.3 cardinal Buffett paid for his concern remains fixed, the yearly dividend's continued maturation pushed his output connected outgo up to astir 50%. That's a singular feat considering that the S&P 500 has averaged yearly returns of 10.5% during the past 70 years.

And since Buffett's 2022 letter, the dividend had been boosted each twelvemonth arsenic helium predicted. Those 400 cardinal shares present wage Berkshire $206 cardinal a twelvemonth successful dividends, astatine slightest until this March, erstwhile the company's adjacent quarterly dividend volition spell retired aft its expected 64th yearly dividend increase.

The different income banal Buffett highlighted, the recognition paper institution American Express (NYSE: AXP), whitethorn not person arsenic storied a dividend past arsenic Coca-Cola's 63-year streak of yearly payout hikes. But successful caller years it's raised its dividend acold faster, with payouts rising by 91% successful the years since Buffett's letter.