Buffett's Stock Picks: Coca-Cola vs. Domino's Pizza for 2025

Buffett's investment strategies emphasize reliability. In evaluating Coca-Cola and Domino's Pizza, both stocks show strong potential. Coca-Cola remains favored for its durable dividend; however, Domino's presents higher growth. Investors are encouraged to consider these solid options for 2025.

Date: 04-01-2025

AI Rating: 7

Earnings Review
In this report, Coca-Cola (NYSE: KO) is highlighted as Buffett's longest-held stock, showing durability despite inflation pressures. Its dividend yield is notably strong at 3.1%, having raised its dividend for 62 years. This reveals a stable earnings environment, positively impacting investor confidence.

Revenue Growth
On the other hand, Domino's Pizza (NYSE: DPZ) shows significant revenue growth with a 5.1% increase reported for the fiscal third quarter. This indicates strong operational performance, which can attract more investors to consider Domino's as a growth stock.

Dividends and Valuation
Coca-Cola offers a more reliable dividend in contrast to Domino's, which has increased its dividend by 655% since 2013. The comparison of their P/E ratios indicates that both stocks are currently valued similarly, which may present an attractive entry point for investors.

Stocks: KO DPZ