37% of Warren Buffett’s $290 Billion Berkshire Hathaway Portfolio Is Invested in These 2 S&P 500 Dividend Stocks
From Yahoo Finance: 2025-04-01 05:12:00
Warren Buffett’s Berkshire Hathaway heavily invests in dividend-paying stocks, with the top 10 holdings all providing reliable dividends. Apple, one of Berkshire’s largest holdings, generates $300 million in dividend income annually for the company. Despite Berkshire reducing its Apple holdings, it remains the conglomerate’s largest position.
American Express, another key Berkshire holding, represents about 14% of the portfolio. The company’s fee-based model creates loyalty and recurring revenue, with fee income up 19% in the fourth quarter of 2024. American Express targets affluent customers who appreciate its rewards program, ensuring steady growth.
Unlike many competitors, American Express operates on a closed-loop model, acting as its own bank. This strategy brings in diverse revenue streams and substantial net interest income, which increased 18% year over year in 2024. The company’s focus on younger card members positions it for future growth and success.
Apple, the world’s largest company, remains Berkshire’s largest holding despite recent reductions in its position. While Berkshire is diversifying its portfolio, recent sales have also boosted its cash reserves to over $334 billion. This strategic move positions Berkshire to capitalize on future investment opportunities.