Almost a third of Warren Buffett's colossal $294 billion portfolio is allocated to three stocks, which could potentially generate $2.1 billion in dividends for Berkshire Hathaway this year.
In the world of global conglomerates, Berkshire Hathaway stands tall with a $1 trillion market capitalisation and a diverse portfolio of subsidiaries, including Dairy Queen and GEICO Insurance. One of its key strengths lies in its investments in dividend-paying stocks, which account for a significant portion of its $294 billion portfolio of publicly traded stocks and securities.
Three of Berkshire Hathaway's top dividend-paying stocks are Chevron Corporation, Coca-Cola, and American Express. These companies are expected to contribute a substantial amount to Berkshire's dividend income in 2025.
Chevron Corporation is one of the world's largest oil and gas companies, with operations spanning exploration, drilling, transportation, refining, and consumer-facing gas stations. Berkshire Hathaway owns 118.6 million shares of Chevron, worth $18.3 billion, which account for 6.2% of its portfolio. Chevron is expected to generate about $811 million in dividend income for Berkshire in 2025, based on its current shareholding and a total dividend per share of $6.84 for the year. Chevron has raised dividends for 38 consecutive years and offers a forward dividend yield of approximately 4.4%.
Coca-Cola, with a product portfolio spanning across 200 different brands worldwide, is another significant contributor to Berkshire Hathaway's dividend income. Berkshire owns 400 million shares of Coca-Cola, worth $27.6 billion, which account for 9.4% of its portfolio. Coca-Cola provides approximately $816 million in annual dividends to Berkshire Hathaway at a dividend rate of $2.04 per share in 2025. Coca-Cola has increased its dividend for over 63 consecutive years, making it a "dividend king," with a forward yield close to 2.97%.
American Express, a global payments powerhouse, is the third dividend-paying stock in Berkshire Hathaway's portfolio. While specific 2025 dividend amounts were not detailed in the available results, American Express is consistently cited alongside Chevron and Coca-Cola as a top dividend stock in Berkshire's portfolio.
These three companies are major sources of Berkshire Hathaway’s dividend income, with Chevron and Coca-Cola each contributing just over $800 million annually and American Express among the significant dividend payers in the portfolio.
Warren Buffett, the CEO of Berkshire Hathaway, has a penchant for investing in companies with steady revenue growth, robust profits, and experienced management teams, as well as companies with active dividend schemes and share buyback programs. It's unlikely that Berkshire will dump its long-standing dividend payers under its new leader due to the immense cash flow they provide.
In a notable announcement, Buffett revealed that he will step down as CEO at the end of 2025 and hand the reins to his chosen successor, Greg Abel. However, Buffett will continue to serve as the conglomerate's chairman, ensuring a smooth transition and the continued focus on profitable investments.
Investors looking for consistent dividend income may find these three companies, Chevron Corporation, Coca-Cola, and American Express, appealing additions to their portfolios, following Berkshire Hathaway's lead.
Berkshire Hathaway, with a $1 trillion market capitalisation, owns significant shares of Chevron Corporation, Coca-Cola, and American Express. These companies, with a combined contribution of over $2.4 billion in annual dividends to Berkshire Hathaway, are major sources of its dividend income in 2025. Investors seeking consistent dividend income may find Chevron Corporation, Coca-Cola, and American Express appealing additions to their portfolios, emulating Berkshire Hathaway's diversified investments.
