American business tycoon Warren Buffett, the founder of Berkshire Hathaway, a multinational conglomerate holding company, earns an impressive $2.1 billion in dividends from just three stocks. These stocks are the driving force behind his ever-growing wealth.
Buffett, also known as the “Oracle of Omaha,” is renowned for his investing skills, which have paid off handsomely over the years. He has a preference for dividend-paying companies, although Berkshire Hathaway itself does not pay dividends to its shareholders. Buffett believes that by not paying dividends, he can offer greater returns to his shareholders. In 2023, Buffett raked in a staggering $6 billion in dividends, a figure that has only continued to rise. This success is largely attributed to three key stocks.
One of Buffett’s famous investing mantras is “The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.” This philosophy has guided him throughout his successful career in investing, particularly with the following three stocks.
The first stock that has contributed significantly to Buffett’s dividend earnings is Kraft Heinz, a multinational food company best known for its Heinz tomato ketchup. Despite admitting to making mistakes in his investment in Kraft Heinz, Buffett’s ownership of 325.6 million shares, valued at $11.8 billion, has proven to be lucrative. With a yield of 4.4%, Buffett earns around $520.5 million in dividends from this stock.
Coca-Cola, the beverage giant, is another top-performing stock in Buffett’s portfolio. Buffett’s 400 million shares in Coca-Cola, valued at $23.5 billion, provide him with a steady stream of dividends. With a yield of 3.3%, Buffett is expected to earn approximately $775.6 million in dividends from Coca-Cola this year.
The third key stock driving Buffett’s wealth is Chevron, a gas and oil giant. Buffett’s ownership of over 126 million shares in Chevron, valued at $20.5 billion, has been a significant contributor to his net worth. With a yield of 4%, Chevron is expected to generate around $822 million in dividends for Buffett this year.
These three stocks, along with others in Buffett’s portfolio such as Bank of America and Moody’s Corporation, continue to fuel his immense wealth. Since acquiring BNSF Railway in 2010, Buffett has received a staggering $41.8 billion in dividends from the railroad company.
Warren Buffett’s success in earning over $47 million in weekly dividends from these top three stocks showcases his unparalleled investing acumen and the power of long-term investment strategies.