Warren Buffett, the CEO of Berkshire Hathaway, oversees a portfolio filled with dividend stocks. Among them, seven standout stocks are projected to generate a total of $4.5 billion in annual dividend income for Buffett’s company.
1. Occidental Petroleum: $911,597,004 (including preferred dividend income)
Occidental Petroleum, an integrated oil and gas company, is the top income-producing stock in Berkshire Hathaway’s portfolio for 2025. With over 264 million shares of Occidental common stock, Berkshire is set to receive nearly $232.5 million in dividend income. Additionally, the preferred stock yielding 8% will contribute another $679.1 million, resulting in over $911 million in expected dividends from Occidental this year.
2. Bank of America: $796,957,680
Despite selling more than 266 million shares of Bank of America stock, Berkshire Hathaway is still expected to receive almost $797 million in dividend income from the bank. Bank of America’s strategic focus on interest rate sensitivity and investments in technology have positioned it well to continue generating value for shareholders.
3. Coca-Cola: $776,000,000
As Berkshire Hathaway’s longest-tenured holding since 1988, Coca-Cola remains one of Buffett’s top dividend payers. With a history of raising its dividend for 62 consecutive years, Coca-Cola is projected to provide Berkshire with $776 million in annual dividend income. The company’s global presence and strong brand recognition have been key drivers of its long-term success.
Overall, these three stocks, along with four others in Berkshire Hathaway’s portfolio, are expected to significantly contribute to the company’s annual dividend income.
The Coca-Cola Company’s “Footprint” report showcases its strong brand and marketing efforts, which bridge generational gaps and engage consumers through social media and influential brand ambassadors. As a provider of beverages, Coca-Cola benefits from a consistent demand for its products regardless of economic conditions, ensuring steady cash flow year after year.
Chevron, a global energy giant, has raised its annual dividend for 37 consecutive years, with an expected payout of over $773 million in 2025. Chevron’s diversified operations, including upstream drilling, midstream, and downstream activities, provide financial stability by offsetting fluctuations in oil and gas prices. With strategic investments and projects in the pipeline, Chevron is poised to boost its operating cash flow significantly in the near future.
Kraft Heinz, despite facing challenges as one of Berkshire Hathaway’s underperforming investments, continues to deliver a substantial dividend. The company’s focus on essential food products ensures a steady demand regardless of economic conditions. However, high debt levels and goodwill pose financial risks for Kraft Heinz, requiring a strategic approach to improve its financial standing.
American Express, a leading credit-services provider and a long-term holding in Berkshire Hathaway’s portfolio, is expected to generate $424.5 million in dividend income in 2025. The company’s dual revenue streams from payment processing and lending activities capitalize on economic expansions, catering to a financially stable customer base. With a focus on affluent clientele, American Express has established a strong position in the credit card industry.
Wealthier individuals tend to maintain their spending habits and fulfill their financial obligations even when faced with slight economic uncertainty. This resilience among higher-income consumers has proven advantageous for American Express (AmEx) in navigating economic downturns more effectively compared to many other lending institutions.
One key strategy that has contributed to AmEx’s success is catering to the affluent demographic. By serving this market segment, AmEx has been able to mitigate risks during recessions and maintain a stable financial position.
Apple, a market leader in the tech industry, has implemented a successful share repurchase program over the past 11 years, resulting in a significant reduction in its outstanding share count. This initiative has been instrumental in enhancing Apple’s financial performance and attractiveness to value-oriented investors.
Berkshire Hathaway, under the leadership of Warren Buffett, holds Apple as its largest investment by market value. Despite reducing its stake in Apple, Berkshire Hathaway continues to view the tech giant as a top holding. The substantial dividend income generated from Apple’s shares underscores the company’s financial strength and long-term prospects.
Apple’s capital-return program, highlighted by consistent share buybacks totaling over $725 billion in the last 11 fiscal years, has been pivotal in boosting the company’s earnings per share and overall shareholder value. Additionally, Apple’s strong brand reputation and innovative products have solidified its position as a market leader in the smartphone industry.
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Disclosure: American Express and Bank of America are advertising partners of Motley Fool Money. Sean Williams holds positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Chevron, and recommends Kraft Heinz and Occidental Petroleum. The Motley Fool maintains a strict disclosure policy regarding its financial interests and partnerships.
