American businessman Warren Buffett, founder of the multinational conglomerate Berkshire Hathaway, receives $2.1 billion in dividends from just three stocks. These are the three stocks that are driving his growing wealth.
Do not miss:
Buffett, affectionately known as the “Oracle of Omaha,” is renowned for his investing prowess, which has certainly paid off. Buffett is known for favoring companies that pay dividends, although his own company, Berkshire Hathaway, pays none to its shareholders. Instead, Buffett believes he delivers greater returns to his shareholders by letting them decide for themselves. InvestorPlace reported that as of 2023, Buffett had earned a staggering $6 billion in dividends last year, and this amount has increased dramatically. This is thanks to three stocks.
One of Buffett’s most famous investment tips is: “The stock market is a game in which strikes are not called. You don’t have to bet everything, you can wait for the strike to come.” This advice has accompanied him throughout his successful career as an investor and has paid off in these three stocks.
The first successful stock that Buffett earned dividends from was Kraft Heinz, a multinational food company known for its Heinz tomato ketchup. Kraft Heinz is Berkshire Hathaway’s seventh-largest holding, and Buffett currently owns 325.6 million shares worth an impressive $11.8 billion. With a 4.4% yield, which is the highest stock in his portfolio, Buffett earns a decent $520.5 million in dividends. Many people will be surprised to learn that Buffett made a mistake when investing in the food company. During an interview with CNBC in 2019, Buffett admitted that he miscalculated some aspects of the company. He told interviewer Becky Quick, “I was wrong on a couple of things about Kraft Heinz. We overpaid for Kraft.” Despite mistakenly overpaying for the company, as it is Buffett’s highest-paying stock, this mistake has not held him back financially.
Warren Buffett once said, “If you don’t figure out a way to make money while you sleep, you’ll work until you die.” These high-yield real estate notes paying between 7.5% and 9% make earning passive income easier than ever.
Buffett’s second-highest-paying stock is beverage giant Coca-Cola. InvestorPlace revealed that Buffett bought shares of the beverage company after he was sent a can of Cherry Coke in the 1980s. At the time, he sold all of his holdings in PepsiCo and now holds 400 million Coca-Cola shares worth $23.5 billion. While the yield is lower than Kraft Heinz, Coca-Cola has a 3.3% yield, which will pay Buffett around $775.6 million this year. As one of Buffett’s oldest holdings, the beverage giant proves to be a great all-weather stock that aspiring investors should consider.
The third highest-paying stock that has contributed greatly to Buffett’s sky-high net worth is oil and gas giant Chevron. The investor owns over 126 million shares of the oil company, valued at $20.5 billion. Although Buffett sold some of his shares last year, he bought back more of Chevron. Its stock currently yields 4%, which translates to $822 million in dividends this year, but there is the potential for this figure to rise thanks to the pending acquisition of Hess. If Chevron succeeds in acquiring Hess Corporation, this will open the doors to the lucrative Guyana market and boost the value of Buffett’s shares.
These figures apply only to these three stocks and not to his other holdings, such as Bank of America and Moody’s Corporation. Buffett continues to make a huge sum of money from BNSF Railway, which he owns. InvestorPlace reported that since he acquired the railroad in 2010, he has received $41.8 billion in dividends.
Read next:
“THE SECRET WEAPON OF ACTIVE INVESTORS” Step up your game in the stock market with the #1 trading tool for “news and everything else” – Benzinga Pro. Click here to start your 14-day trial now!
Want to get the latest stock analysis from Benzinga?
This article Warren Buffett’s Weekly Dividend Earnings Top $47 Million: Top 3 Stocks Driving His Wealth originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.