Here's How Much Warren Buffett's Berkshire Hathaway Earns In Dividends From Its Stake In Ally Financial

Warren Buffett's Berkshire Hathaway BRK owns 29 million shares of Ally Financial ALLY stock, which is roughly 9.5% of the company. Even though it's a significant stake in Ally's eyes, it only represents about 0.3% of Berkshire's portfolio.

Ally Financial offers a wide range of banking products and services, and it currently rewards its shareholders with an annual dividend of $1.20 per share. Let's find out how much Berkshire will earn in dividends from its stake.

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 = Number of Shares x Annual Dividend per Share

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So…

Berkshire shares of Ally: 29,000,000

Ally annual dividend per share: $1.20

Total Annual Dividend = 29,000,000 x 1.20

Result: $34,800,000

Berkshire Hathaway will receive about $34.8 million annually in dividends from its investment in Ally Financial, which does not include reinvesting those dividends. If those dividends were reinvested, the annual dividend income would grow accordingly.

The income Ally offers aligns with Buffett’s investment philosophy, which emphasizes steady, predictable returns – this also aligns with Buffett's love of banking stocks.

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