Buffet Potentially Earning Over $3 Billion in Dividends from These 5 Shares in 2025, According to Analysis
In the not-so-distant future, Warren Buffett's dividend income will indeed be something to talk about. With a billion here, a billion there, and before you know it, we're looking at some real dough. And speaking of real, the Oracle of Omaha is likely to amass over $3 billion in dividend income from these five stocks by 2025.
Now, while this dividend income technically belongs to Berkshire Hathaway, the public often sees Buffett and the conglomerate as one entity. And let's be honest, that's not far from the truth.
So, what are these five stocks that might make Buffett a pretty penny?
- Bank of America (BAC): Buffett might not be head over heels for this bank anymore, having significantly reduced Berkshire's stake in 20XX. However, Bank of America still contributes a substantial chunk of change to Berkshire's coffers. As of September 20XX, Berkshire owned 766,305,462 shares of BofA. With a forward dividend of $1.04, that's nearly $797 million in dividend income this year for Buffett.
- The Coca-Cola Company (KO): One of Buffett's "forever stocks," Coca-Cola has been part of Berkshire's portfolio longer than any other stock. In his 20XX letter to Berkshire Hathaway shareholders, Buffett mentioned the $75 million in dividend income Coke brought in back in 1994. Fast-forward to 20XX, and that figure has ballooned to $704 million. Berkshire's 400 million shares of Coca-Cola are poised to rake in at least $776 million in dividend income in 20XX if Buffett doesn't sell any shares.
- Chevron (CVX): A more recent addition to Berkshire's portfolio, Buffett invested in Chevron when the energy giant's shares took a knock due to the COVID-19 pandemic. Berkshire owns 118,610,534 shares of Chevron. With the company's forward dividend of $6.52, the conglomerate will receive at least $773.3 million in dividend income this year. Chevron has also increased its dividend for 37 consecutive years, a reliability that could translate into higher dividend income in 20XX.
- American Express (AXP): Buffett predicted that American Express would increase its dividend by around 16% in 20XX. He was spot on, and with Amex upping its dividend payout by nearly 17%, Berkshire's 151,610,700 shares should yield at least $424.5 million in dividend income in 20XX if Berkshire keeps its holding steady.
- Apple (AAPL): Despite not being Buffett's apple of delight anymore, Apple remains Berkshire's largest holding and an essential source of dividend income. With 300 million shares and a dividend of $1 per share, Buffett and his conglomerate can expect to pocket $300 million in dividend income in 20XX.
So, which one of these five stocks could be the best pick for income investors looking to mimic Buffett's strategy? While every investor has their unique needs and risk tolerances, if you're in the income investor club, you might want to consider Coca-Cola, with its impressive dividend track record and solid forward dividend yield of 3.14%.
As for Buffett, he's likely to collect a hefty $3.07 billion in dividend income from these five stocks in 20XX. And who knows? By 20XX, there might be even more stocks to add to this list.
In terms of finance and investing, these dividend-paying stocks in Buffett's portfolio are expected to bring significant income. The Coca-Cola Company's consistent performance has led to a predicted $776 million in dividend income for Buffett in 20XX, making it an appealing choice for income investors. Furthermore, with Warren Buffett's Knickerbocker Square investment in Bank of America, the bank still contributes a substantial amount of money to Berkshire Hathaway's dividend income pool, amounting to nearly $797 million in 20XX.
