Warren Buffett's Berkshire Hathaway BRK owns 50 million shares of American Express AXP stock, which is roughly 21.1% of the company. And it's a significant stake for Berkshire Hathaway, representing approximately 9% of its portfolio.
American Express is a multinational financial services corporation, known mostly for its credit cards, and it currently rewards its shareholders with a quarterly dividend of $0.70 per share, equating to an annual dividend of $2.80 per share. Let’s find out how much Berkshire will earn in dividends from its stake.
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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
So…
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Berkshire shares of American Express: 151,610,700
American Express annual dividend per share: $2.80
Total Annual Dividend = 151,610,700 x 2.80
Result: $424,509,960
Berkshire Hathaway will receive approximately $424.51 million in dividends from American Express stock this year based on its current dividend rate, which equates to approximately $106.13 million quarterly.
The income Berkshire earns from American Express aligns with Warren Buffett’s investment philosophy, which emphasizes steady, predictable returns.
It's also worth noting that American Express has raised its annual dividend payment for three consecutive years, so Berkshire's dividend income will likely grow in the years ahead as American Express continues returning additional capital to shareholders.
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