Buffett's Berkshire Hathaway Reaps $1.4B in Annual Dividends from Long-Held Stocks
Warren Buffett's legacy at Berkshire Hathaway is still felt today, even though he stepped down as CEO. The conglomerate's massive stock portfolio, valued at $363 billion, reflects his investment strategy of holding onto great businesses for the long haul.
The two longest-held stocks in the portfolio are Coca-Cola (KO) and Chevron (CVX). Both have generated significant dividend income for Berkshire Hathaway over the years. In fact, these two stakes alone earn the company around $1.44 billion in combined annual dividends.
Coca-Cola is the oldest holding, with Berkshire beginning to buy shares in the 1980s and completing its purchase in the early 1990s. The stake is worth approximately $35.4 billion, accounting for 9.4% of the portfolio. Coca-Cola has consistently raised its dividend payout every year since its inception, making it one of the 'Dividend Kings'.
Chevron, on the other hand, was added to the portfolio in 2020 and currently accounts for about 5% of Berkshire's holdings. While the company has increased and decreased its stake in Chevron over time, it still owns an $18 billion stake. Chevron has a strong dividend track record, having raised its payout every year since 1990.