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Berkshire Hathaway (NYSE:BRK), Warren Buffett’s investment firm, owns 789,368,450 shares of Manzana (NYSE:AAPL), which represents approximately 5.1% of the company. And it is a significant percentage for Berkshire, since it represents more than 40% of its portfolio.
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Apple is one of the world’s leading technology companies and currently rewards its shareholders with an annual dividend of $1 per share, not to mention its constant share buyback activity. Let’s find out how much Berkshire will earn in dividends from its stake in Apple.
To determine the total annual dividend income from this investment, we multiply the number of shares by the annual dividend per share:
Total annual dividend income = Number of shares x Annual dividend per share
So…
Berkshire shares in Apple: 789,368,450
Apple’s annual dividend per share: $1
Total annual dividend income = 789,368,450 x 1
Result: $789,368,450
Berkshire Hathaway will receive about $789.4 million in annual dividends for its investment in Apple, which does not include the reinvestment of those dividends. If those dividends were reinvested, your annual dividend income would grow along with the total share count in your portfolio.
The income that Apple offers aligns with Buffett’s investment philosophy, which emphasizes stable and predictable returns. It’s also worth mentioning that Apple has increased its annual dividend payout for 13 consecutive years, so Berkshire’s annual earnings are likely to grow year over year.
Image attribution: Shutterstock
You can also read: Warren Buffett’s investment strategy in five minutes
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