What dividend does Berkshire Hathaway pay?
Berkshire Hathaway is a large, diversified holding company led by renowned investor Warren Buffett that invests in the insurance, private equity, real estate, food, apparel, and utilities sectors. Despite being a large, mature, and stable company, Berkshire Hathaway does not pay dividends to its investors.
The only time Berkshire ever paid a dividend was in 1967. The payout was $0.10 per share. At the time, Berkshire had only one share class. "It was a terrible mistake," Buffet later conceded.
Berkshire Hathaway will receive $776 million in dividends from Coca-Cola this year based on its current dividend rate. This equates to $194 million quarterly, or about $2.13 million daily.
| Company | Dividend Yield |
|---|---|
| Insteel Industries, Inc. (IIIN) | 7.94% |
| Alexander's Inc. (ALX) | 7.35% |
| Artisan Partners Asset Management Inc (APAM) | 7.24% |
| Washington Trust Bancorp, Inc. (WASH) | 6.96% |
Buffett loves The Coca-Cola Company (NYSE: KO) and its soft drinks. Coca-Cola has been in Berkshire's portfolio longer than any other stock. Buffett views co*ke as one of the stocks Berkshire will never sell. It's a Dividend King with 62 consecutive dividend increases.
But the main reason Berkshire doesn't pay dividends is that Buffett is confident in his ability to allocate capital in a more profitable way. Even if Buffett thinks he can't make effective use of his cash reserves, he will choose a buyback plan to return capital to shareholders rather than dividends.
Does Bank of America have sufficient earnings to cover their dividend? Yes, BAC's past year earnings per share was $2.85, and their annual dividend per share is $0.96. BAC's dividend payout ratio is 33.66% ($0.96/$2.85) which is sustainable.
| Stock | Dividend yield |
|---|---|
| Verizon Communications Inc. (ticker: VZ) | 6.4% |
| Pfizer Inc. (PFE) | 5.7% |
| United Parcel Service Inc. (UPS) | 4.4% |
| First American Financial Corp. (FAF) | 3.6% |
Reinvesting Dividends: Instead of taking dividend payouts in cash, Buffett reinvests these dividends to buy more stock shares or new stocks at great value prices. This is key.
Apple: $869.3 million in annual dividend income
It's probably no surprise that Berkshire Hathaway's largest position by market value ($154.7 billion), tech stock Apple (NASDAQ: AAPL), is one of the biggest providers of dividend income.
What are the three dividend stocks to buy and hold forever?
| Stock | Forward yield | Implied upside* |
|---|---|---|
| Johnson & Johnson (JNJ) | 3.3% | 20.2% |
| Merck & Co. Inc. (MRK) | 2.4% | 8.6% |
| Chevron Corp. (CVX) | 4.2% | 35.9% |
| Cisco Systems Inc. (CSCO) | 3.4% | 49.7% |
PepsiCo has an impressive track record of increasing its dividend for 50 consecutive years. This consistent dividend growth, combined with the company's stable business model and strong cash flow from operations makes PepsiCo a top pick for a “safe” dividend stock.
| Stock | Monthly Trailing Dividend* |
|---|---|
| Agree Realty Corp. (ticker: ADC) | 4.4% |
| Modiv Industrial Inc. (MDV) | 7.8% |
| PermRock Royalty Trust (PRT) | 11.3% |
| Ellington Financial Inc. (EFC) | 13.6% |
With its 4-star rating, we believe Berkshire Hathaway's stock is undervalued compared with our long-term fair value estimate of $427 per Class B share, which is equivalent to 1.45 times our estimate of the firm's book value per share at the end of 2024 and 1.35 times for 2025.
Historical Performance. Berkshire Hathaway: Has historically outperformed the S&P 500 over the long term under Warren Buffett's leadership. However, past performance doesn't guarantee future results.
| Stock | Implied Upside from July 15 close |
|---|---|
| Apple Inc. (AAPL) | 2.4% |
| American Express Co. (AXP) | 18.9% |
| Coca-Cola Co. (KO) | 7.2% |
| Chevron Corp. (CVX) | 22.1% |
Legendary value investor and Berkshire Hathaway CEO Warren Buffett has never allowed a stock split of his company's Class A shares (BRK-A), reasoning that to do so would counter his basic buy-and-hold investment philosophy.
It's no wonder why investors closely monitor Warren Buffett's portfolio. He is arguably the greatest investor of all time, and he has doled out some of the best investment advice over the years.
Berkshire Hathaway is a large, diversified holding company led by renowned investor Warren Buffett that invests in the insurance, private equity, real estate, food, apparel, and utilities sectors. Despite being a large, mature, and stable company, Berkshire Hathaway does not pay dividends to its investors.
- Comcast Corp Class A. (CMCSA)
- Medtronic PLC. (MDT)
- Verizon Communications Inc. (VZ)
- Starbucks Corp. (SBUX)
- Altria Group Inc. (MO)
Which company gives the highest dividend in the world?
| Symbol | Exchange | Div yield % (indicated) |
|---|---|---|
| TAPARIA D | BSE | 851.06% |
| VITRO/A D | BMV | 226.75% |
| 99552 D | TADAWUL | 189.87% |
| 1114 D | HKEX | 143.56% |
| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|---|---|
| ServiceNow (NOW) | 1.49 | Strong Buy |
| Assurant (AIZ) | 1.50 | Strong Buy |
| Howmet Aerospace (HWM) | 1.50 | Strong Buy |
| Insulet (PODD) | 1.50 | Strong Buy |
- The Best Warren Buffett Stocks.
- Apple Inc. ( AAPL)
- Bank of America Corp. ( BAC)
- American Express Co. ( AXP)
- Coca-Cola Co. ( KO)
- Chevron Corp. ( CVX)
- Occidental Petroleum Corporation (OXY)
- Kraft Heinz Co. ( KHC)
To have a perfect portfolio to generate $1000/month in dividends, one should have at least 30 stocks in at least 10 different sectors. No stock should not be more than 3.33% of your portfolio. If each stock generates around $400 in dividend income per year, 30 of each will generate $12,000 a year or $1000/month.
| Stock | Trailing annual dividend yield |
|---|---|
| Boston Properties Inc. (BXP) | 6.4% |
| Crown Castle Inc. (CCI) | 6.5% |
| Verizon Communications Inc. (VZ) | 6.6% |
| Altria Group Inc. (MO) | 8.5% |
