Warren Buffett's Berkshire Hathaway BRK owns 789,368,450 shares of Apple AAPL stock, which is roughly 5.1% of the company. And it's a significant stake for Berkshire, representing over 40% of its portfolio.
Apple is one of the world's leading technology companies and it currently rewards its shareholders with an annual dividend of $1 per share, not to mention its consistent share repurchase 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 = Number of Shares x Annual Dividend per Share
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So…
Berkshire shares of Apple: 789,368,450
Apple annual dividend per share: $1.00
Total Annual Dividend = 789,368,450 x 1.00
Result: $789,368,450
Berkshire Hathaway will receive about $789.4 million in dividends annually from its investment in Apple, which does not include reinvesting those dividends. If those dividends were reinvested, the annual dividend income would grow along with its total share count in its portfolio.
The income Apple offers aligns with Buffett’s investment philosophy, which emphasizes steady, predictable returns – and it's also worth noting that Apple has raised its annual dividend payment for 13 consecutive years, so Berkshire's annual income will likely grow year after year.
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