American entrepreneur Warren Buffett, founder of the multinational conglomerate holding company Berkshire Hathaway, receives $2.1 billion in dividends from just three stocks. Here are the three stocks powering his growing wealth.
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Affectionately referred to as the “Oracle of Omaha,” Buffett is known for his prowess as an investor, which has certainly paid off. Buffett is known to favor companies that pay dividends, although his own company, Berkshire Hathaway, does not pay dividends to its shareholders. Instead, Buffett believes he can deliver greater returns to his shareholders by letting them decide for themselves. InvestorPlace reported that Buffett earned a whopping $6 billion in dividends last year by 2023, and this amount has increased dramatically. This is thanks to three shares.
One of Buffett’s most famous investment pieces of advice is: “The stock market is a no-call-strike game. You don’t have to jump in on everything — you can wait for your pitch.” This advice has helped him throughout his successful investing career and has paid off in these three stocks.
The first successful share that Buffett earned dividends from Kraft Heinz, a multinational food company known for its Heinz tomato ketchup. Kraft Heinz is the seventh largest holding company in Berkshire Hathaway and Buffett currently owns 325.6 million shares worth an impressive $11.8 billion. With a yield of 4.4%, the highest stock in his portfolio, Buffett earns a tidy $520.5 million in dividends. Many people will be surprised to learn that Buffett made a mistake investing in the food company. During a 2019 interview with CNBC, Buffett admitted that he had misjudged some aspects of the business. He told interviewer Becky Quick: “I was wrong in a number of ways about Kraft Heinz. We paid too much for Kraft.” Despite wrongly overpaying for the company, as Buffett’s highest-paying stock, this mistake hasn’t held him back financially.
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Buffett’s second-highest paying stock is beverage giant Coca-Cola. InvestorPlace revealed that Buffett bought stock in the beverage company after they sent him a can of Cherry Coke in the 1980s. At the time, he sold all his PepsiCo holdings and now has 400 million Coke shares worth a whopping $23.5 billion. Although its yield is lower than Kraft Heinz’s, Coca-Cola has a 3.3% yield, which will earn Buffett about $775.6 million this year. As one of Buffett’s oldest stocks, the beverage giant is proving to be a great all-weather stock that is ambitious investors should consider.
The third highest paying stock that has largely contributed to Buffett’s skyrocketing fortune is gas and oil giant Chevron. The investor owns more than 126 million shares in the oil company, worth $20.5 billion. While Buffett sold some of his shares last year, he bought more in Chevron. Currently, its shares have a yield of 4%, which equates to $822 million in dividends this year, but there is potential for that number to rise thanks to the impending Hess acquisition. If Chevron is successful in acquiring Hess Corporation, it will open doors to the lucrative Guyana market and increase the value of Buffett’s shares.
These figures are only from these three stocks and not from his other stocks such as Bank of America and Moody’s Corporation. Buffett still makes a whopping amount of money from BNSF Railway, which he owns. InvestorPlace reported receiving $41.8 billion in dividends since acquiring the railroad in 2010.
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This article Warren Buffett’s weekly dividend income exceeds $47 million: the three biggest stocks driving his wealth originally appeared on Benzinga.com
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