American Business Owner Warren BuffettThe founder of multinational conglomerate Berkshire Hathaway, is collecting $2.1 billion in dividends from just three stocks. Here are the three stocks that are helping to increase his wealth.
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Affectionately known as the “Oracle of Omaha,” Buffett is famous for his investing prowess, which has certainly paid off. Buffett is known for favoring companies that pay dividends, even though his own company, Berkshire Hathaway, doesn’t pay any to its shareholders. Instead, Buffett believes in providing better returns to his shareholders by letting them decide for themselves. InvestorPlace reported that in 2023, Buffett earned a staggering $6 billion in dividends last year, and that amount has grown dramatically. That’s thanks to three stocks.
One of Buffett’s most famous pieces of investing advice is: “The stock market is a game of chance. You don’t have to go all out; you can just wait your turn.” That advice has stuck with him throughout his illustrious investing career and has paid off for these three stocks.
The first successful stock that Buffett Kraft Heinz, a multinational food company known for its Heinz tomato ketchup, has the largest dividends. 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 yield of 4.4%, which is the highest holding in his portfolio, Buffett earns a decent dividend of $520.5 million. Many people will be surprised to learn that Buffett made a mistake investing in the food company. In a 2019 interview with CNBC, Buffett admitted to misjudging certain aspects of the company. He told interviewer Becky Quick, “I was wrong about a lot of things about Kraft Heinz. We paid too much for Kraft.” Although he overpaid for the company, as Buffett’s highest-paying stock, the mistake didn’t hold him back financially.
Warren Buffett once said, “If you can’t figure out a way to make money while you sleep, you’ll work until you die.” These high-yield real estate bonds, which pay between 7.5% and 9%, make earning passive income easier than ever.
Buffett’s second highest-yielding stock is beverage giant Coca-Cola. InvestorPlace revealed that Buffett bought shares of the beverage company after it sent him a can of Cherry Coke in the 1980s. At the time, he sold all of his PepsiCo stakes and now owns 400 million shares of Coca-Cola worth a whopping $23.5 billion. While the yield is lower than Kraft Heinz, Coca-Cola has a yield of 3.3%, which will net Buffett about $775.6 million this year. As one of Buffett’s oldest holdings, the beverage giant is proving to be a great all-around stock that has aspirations of becoming a safe bet. investors should consider.
The third highest-yielding stock, and one that has contributed greatly to Buffett’s fortune, is oil and gas giant Chevron. The investor owns more than 126 million shares of the oil company, valued at $20.5 billion. Although Buffett sold some of his shares last year, he has been buying back others. Currently, his stock yields 4%, which represents $822 million in dividends this year, but that figure could increase with the impending acquisition of Hess. If Chevron manages to acquire Hess Corporation, it will open the doors to the lucrative Guyanese market and increase the value of Buffett’s shares.
These numbers only apply to these three stocks and not to his other holdings like Bank of America and Moody’s Corporation. Buffett still makes a huge amount of money from BNSF Railway, which he owns. InvestorPlace reported that since acquiring the railroad in 2010, he has received $41.8 billion in dividends.
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This item Warren Buffett’s Weekly Dividends Surpass $47 Million: Top 3 Stocks That Contributed to His Wealth originally appeared on Benzinga.com
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