Warren Buffett collects a dividend totaling $4.84 billion from these six specified stocks.
Warren Buffett, the Notorious Billionaire, Banking Big with Just Six Stocks
That guy Warren Buffett is one crafty investor. And you know what? He's raking in a staggering $4.84 billion each year, all from dividends on just six stocks. Yup, you heard that right. At the time of this writing, Berkshire Hathaway's portfolio contains about 50 stocks. And there's a good reason Buffett's keen on his top six. Here's why.
Chevron: $964.107.966 in Annual Dividends
Buffett's got a good feeling about energy company Chevron. With the Ukraine crisis causing an energy crunch and jacking up commodity prices, Buffett cashed in big in 2022. Chevron's stock shot up over 50% and now accounts for nearly 8% of Berkshire Hathaway's portfolio. In exchange for his investment, Buffett gets $964.107.966 in annual dividends. Chevron's been increasing its dividend for over 35 years, with the possibility of benefiting from even higher energy prices coming up in 2023. Oh, and did we mention they slashed their net debt by a whopping 68% to $8.2 billion in the first nine months of 2022?
Bank of America: $908.909.765 in Annual Dividends
You know the drill – Warren Buffett loves his financial stocks. Bank of America sits comfortably at around the 10% mark in Berkshire's portfolio, making it the second-biggest investment after Apple. With the Fed planning to keep tight monetary policies and raise interest rates to fight inflation in 2023, Bank of America is poised to benefit and dish out some hefty dividends.
Occidental Petroleum: $901.062.858 in Annual Dividends
Occidental Petroleum, Buffett's second energy stock, took a big leap in 2022, thanks to Buffett's investment in over 194 million shares. The payoff? A hefty dividend and a whopping 120% boost in the stock's price.
Apple: $842.008.404 in Annual Dividends
Apple's still one of Buffett's all-time favorite hangouts. The company takes up almost 42% of Berkshire Hathaway's portfolio, even with a rough year for tech stocks. Apple's the world's most valuable company, with a market cap of $2.16 trillion. Pat yourself on the back, Buffett!
Coca-Cola: $704.000.000 in Annual Dividends
Coca-Cola, another one of Buffett's long-term loves, has been part of Berkshire Hathaway since 1988. Known as a "dividend king," Coca-Cola has the potential for its 61st consecutive dividend increase this year. What's it about Coca-Cola that Buffett loves so much? This value stock possesses a powerful moat, selling nearly half of the U.S. market share for beverages. Oh, and it's looking strong against inflation. Plus, raising the price of a typical Coca-Cola product by just one cent could bring in an extra $20 million per day. Whoa!
Kraft Heinz: $521,015,709 in Annual Dividends
Kraft Heinz, the food and beverage empire, is the third-largest company in the U.S. (and the fifth globally). Even in a slow economy, food is vital, making it an attractive investment. Kraft Heinz claims about 4% of Buffett's portfolio and offers a tempting dividend yield of around 4.23%.
These 10 "perfect" stocks can bring investors an average annual return of up to 18%
Now that's something to chew on!
In Case You Missed ItWarren Buffett's dividend-focused strategy powers Berkshire Hathaway's $4.84 billion annual dividend earnings, generated primarily from companies like Coca-Cola, Bank of America, and other top picks. So how does it work?
- Prioritizing High-Quality Companies: Buffett looks for enduring businesses like Coca-Cola and Apple, which boast strong brands or ecosystem loyalty.
- Investing in Virtuous Cycles: Buffett's picks deliver consistent cash flows, securing dividend payouts even during economic downturns – like the 2% volume growth Coca-Cola saw in Q1 2025.
- Reinvesting for Growth: Buffett uses dividends to reinvest in new opportunities without selling shares, putting the power of compounding to work.
- Protection for Downside: Buffett's moat-driven businesses maintain profitability during recessions, ensuring continuous dividends.
- EXTRA: Income-Focused ETFs: For passive investors seeking income, newer strategies like OMAH mimic Buffett's holdings while targeting a high 15% annual yield.
In other words, patience and conviction make the perfect ingredients for investment success – à la Buffett!
Buffett's Berkshire Hathaway earns $4.84 billion annually from dividends on six stocks, with Chevron providing $964.107.966. Bank of America accounts for $908.909.765, Occidental Petroleum contributes $901.062.858, and Apple adds $842.008.404. Coca-Cola provides $704.000.000, and Kraft Heinz offers $521,015,709. Buffett's dividend-focused strategy prioritizes high-quality companies, invests in virtuous cycles, and reinvest for growth to ensure continuous income even during economic downturns. For passive investors, income-focused ETFs, such as OMAH, target a high 15% annual yield, mimicking Buffett's holdings.
