The Holy Grail of Investing.

Motley Fool

However, one aspect that I find impressive is the dividend growth of his stocks. This is often overlooked because it is happening gradually over years and is therefore not as eye-catching. But those annual returns soon start to compound and produce amazing results.

So, if I had £10k in excess savings today, here’s why I’d consider investing in dividend growth stocks.
Coca-Cola
Buffett completed his purchase of Coca-Cola shares in the 1990s after accumulating them for several years.

They cost $1.3bn, which was a huge sum for Berkshire back then. However, after receiving 30+ years of rising dividends from the soda behemoth, Buffett’s firm was set to earn $736m in dividends last year.
Up from just $75m in 1994!

The dividend yield on Coke shares today is 3%. For Buffett, the annualised yield on cost is currently 57% (and growing). This lays bare the incredible power of long-term investing.