Coca-Cola (NYSE: KO) and American Express (NYSE: AXP) are the 2 longest-held positions successful the Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) equity portfolio. It has owned each of these stocks for astir 40 years, and Warren Buffett said he'd ne'er merchantability them portion helium was CEO. Although Buffett handed implicit the reins to Greg Abel this year, Abel reassured investors that he's not readying to veer from Buffett's way arsenic helium takes over.
In Abel's archetypal shareholder missive arsenic CEO, helium gave respective important updates, including the dividend income from immoderate of the company's favourite stocks. The numbers mightiness stroke your mind, and it volition surely assistance you recognize wherefore dividend stocks tin beryllium truthful invaluable to a diversified portfolio.
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Berkshire Hathaway archetypal bought American Express banal backmost successful 1964 and Coca-Cola successful 1988. Since then, the institution has built up its positions, particularly betwixt 1994 and 1995 erstwhile it spent astir $1.3 cardinal connected each one. Today, Berkshire's wide positions are worthy $28 cardinal and $56 billion, respectively. Those are beardown results implicit 30-plus years.
Both stocks person performed well, however, it's the yearly dividends that marque these investments incredibly lucrative. In 2025 alone, Berkshire Hathaway made $816 cardinal successful dividends from Coca-Cola banal and $479 cardinal from American Express stock. That's successful 1 twelvemonth alone, and it keeps increasing annually arsenic the dividend is raised.
Consider that full erstwhile factoring successful the outgo ground of the stock: While Coca-Cola's dividend yields 2.6% astatine today's price, Berkshire Hathaway's output is based connected the outgo astatine the clip of purchase. The existent yearly dividend is $2.12 per share, and Berkshire Hathaway's outgo ground per stock (on its 400 million-plus shares) is $3.25 per share. That works retired to a 65% cost-basis yield. With a fewer much years of dividend increases, Berkshire's yearly dividend proceeds could transcend its full outgo ground for the stock.
It's a akin communicative for American Express. Berkshire owns 151 cardinal shares, truthful the full outgo per stock is $8.60. The yearly dividend is $3.80, which means its output connected outgo is 44%.
This dividend income adds a batch to the holding company, since absorption tin usage it for galore antithetic purposes, including acquiring caller businesses and wide operations.

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