Warren Buffett's Berkshire Hathaway will collect nearly $800 million in Apple dividends this year - and that figure is likely to rise in the future
Warren Buffett's Berkshire Hathawaywill collect almost $800 million in Apple dividendsthis year.
- The investor's company owns 5.5% of Apple, and has more than tripled its money on the stock.
Apple confirmed this week that it will pay a total dividend of 0.865 cents a share in 2021, after raising its quarterly payout from 0.205 cents to 0.22 cents earlier this year. Berkshire owned 908 million shares of the technology group at the last count, so it's set to receive $785 million this calendar year.
Berkshire has raked in an average of $775 million in annual dividends from
Those figures might seem big, but they're dwarfed by the total value of Berkshire's Apple position. The company spent $35 billion between 2016 and 2018 to amass a stake worth $133 billion today, meaning it's more than tripled its money on paper in a few short years. Moreover, Apple has become the most valuable holding in Berkshire's
Assuming Buffett continues holding Apple, he's likely to see his dividend checks fatten over time. Apple's bosses plan to continue lifting the dividend each year, they said on an earnings call in April. They also spent north of $80 billion on stock buybacks over the past four quarters, increasing Berkshire's ownership of the business and its share of the dividends.
If Apple's stock price keeps rising, and the company continues repurchasing shares and raising its dividend, Berkshire is poised to see its unrealized gain, ownership, and dividend checks all increase over time.
Read more: Mario Gabelli has racked up a 7,000% gain on Berkshire Hathaway stock. The billionaire investor explains why he likes Robinhood, still backs Warren Buffett, and worries about the Fed taper.
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