Renowned investor Warren Buffett, the founder and CEO of Berkshire Hathaway (NYSE: BRK.A), has long been associated with his strategic investment approach, particularly a preference for companies with a strong track record of paying dividends.
Over the years, Buffett’s strategy has evolved to prioritize acquiring outstanding businesses at reasonable prices, moving away from solely seeking undervalued stocks.
Warren Buffett’s investment philosophy, which prioritizes profitability and long-term value, has proven rewarding as he is set to earn over $6 billion in dividends in 2024. Therefore, the legendary investor will earn approximately $16.44 million daily from dividends alone.
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Buffett’s top earners
Among his top dividend earners are well-known companies, each playing a crucial role in enhancing Berkshire Hathaway’s dividend income.
Leading the pack is packaged food giant Kraft Heinz (NYSE: KHC), with the American investor owning 325.6 million shares valued at almost $12 billion. The stock boasts an attractive yield of 4.4% and is poised to deliver dividends totalling around $520 million.
Another cornerstone of Buffett’s portfolio is the beverage giant Coca-Cola (NYSE: KO), renowned for its cash-generating capabilities. The Oracle of Omaha holds 400 million shares of Coca-Cola, valued at almost $23.5 billion, representing a 9.3% stake in the company. With a yield of 3.3%, Coca-Cola is expected to contribute approximately $775 million in dividends this year.
However, the oil and gas giant Chevron (NYSE: CVX) stands out in Berkshire Hathaway’s dividend portfolio. With Buffett’s holdings surpassing 126 million shares valued at $20.5 billion, Chevron is likely to yield dividends totalling over $820 million this year, offering a robust yield of 4%.
Rewards from Buffett’s strategy
Buffett’s investment strategy underscores the importance of staying within one’s circle of competence, emphasizing avoiding investments in businesses or industries beyond one’s understanding.
According to a Finbold report, the businessman continues to accumulate stock in various companies. His latest acquisition was a stake in Liberty Sirius XM (NASDAQ: LSXMA). Notably, the investor acquired 4.3 million shares for approximately $116.58 million.
Overall, the Berkshire Hathaway chairperson’s understanding of the investment world has been evident as he navigates through different economic phases, including periods of heightened inflation, employing key strategies to manage fluctuations effectively.
