Berkshire Hathaway Earns This Much In Dividends From Its Stake In American Express Every Year

Warren Buffett's Berkshire Hathaway BRK owns a large percentage of American Express AXP stock. As of June 30, Berkshire Hathaway owns about 151.6 million shares of American Express. Its stake is worth approximately $36.2 billion, representing about 21.3% of American Express's total market capitalization and about 11.8% of Berkshire Hathaway's portfolio.

American Express currently pays a quarterly dividend of $0.70 per share, which equates to an annual dividend of $2.80 per share and gives its stock a yield of about 1.2% at the time of this writing.

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Let's find out how much Berkshire Hathaway will earn in dividends from its investment.

How To Calculate

Total Annual Dividend = Number of Shares x Annual Dividend per Share

So …

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

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Nearly $425 Million Annually

Berkshire Hathaway will receive about $424.51 million annually in dividends from its investment in American Express, not including reinvesting those dividends. If those dividends were reinvested, the annual dividend income would grow accordingly.

American Express has also raised its annual dividend payment each of the last three years, so Berkshire Hathaway's dividend income will likely grow in the years ahead as the company delivers more increases.

"Both Amex and Coke will almost certainly increase their dividends in 2024 – about 16% in the case of Amex – and we will most certainly leave our holdings untouched throughout the year," Warren Buffett said in a February 2024 letter to shareholders.

"The lesson from Coke and Amex? When you find a truly wonderful business, stick with it," Buffett continued. "Patience pays, and one wonderful business can offset the many mediocre decisions that are inevitable."

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