But also the two following investments in the Bank of America (WKN: 858388) and on Coca Cola (WKN: 850663) carry weight with the holding company. Especially when we look at the dividends they are currently paying, this is pretty obvious.
So today, let’s take a look at the dividends of the top 3 holdings from Warren Buffett and Berkshire Hathaway. As well as why dividends are so important to the success of the Omaha Oracle.
Warren Buffett: 4.192 US-Dollar Dividende!
As we can see when looking at the top holdings Apple, Bank of America and Coca-Cola, they all deliver high dividends within a year. For example, Apple pays a total dividend of $ 801.4 million per year to Berkshire Hathaway. At Bank of America, the value is $ 743.7 million and Coca-Cola makes it to $ 656 million. These are gigantic amounts that Warren Buffett receives here.
However, it is especially exciting when we calculate it down to every single minute. For example, Coca-Cola and Bank of America paid down $ 1,248 and $ 1,415 to Warren Buffett, respectively. Apple tops this figure with a dividend per minute of $ 1,529. When added together, this results in the aforementioned value of 4,192 US dollars per minute. That is more than many people make a month.
Not even all sources of passive income. Smaller holdings also ultimately yield dividends, which would have to be added to this amount. Nevertheless, it is very clear: Warren Buffett receives high dividends per minute. With a value of around 2.19 billion US dollars per year, however, also in absolute terms.
What are the funds needed for?
Dividends are part of Warren Buffett’s recipe for success. The Omaha Oracle likes to invest in companies that have strong and growing cash flow. That should partly explain why Apple, Coca-Cola and Bank of America are among the top holdings. Not what Warren Buffett intends to do with these dividends, however.
To put it very abstractly, the dividends and the incoming funds mean flexibility for the oracle of Omaha. With the help of these distributions, Buffett can, for example, manage share buybacks. Or make further investments. Or put the money aside to wait for attractive opportunities. The war chest is still bulging with more than 140 billion US dollars in cash.
Warren Buffett, however, uses dividends in two ways: First, to bet on strong stocks with solid cash flows. As well as, on the other hand, to maintain flexibility. As income investors, we can certainly learn something from this.
Warren Buffett and the dividend …
While not an income investor, Warren Buffett has an approach to heavy dividends and cash flows. The top three Berkshire Hathaway holdings alone are pouring more liquidity into their coffers than most of us would ever dare to dream of.
The post Warren Buffetts Top-3-Holdings zahlen jede Minute 4.192 US-Dollar Dividende appeared first on The Motley Fool Deutschland.
Vincent owns shares in Berkshire Hathaway. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $ 200 call on Berkshire Hathaway (B shares), short January 2021 $ 200 put on Berkshire Hathaway (B shares) and short December 2020 $ 210 call on Berkshire Hathaway (B shares).
Motley Fool Deutschland 2020