Warren Buffett's Berkshire Hathaway BRK has recently made a significant investment in Chubb Limited CB, acquiring 25,923,840 shares. Chubb, a leading global insurance company, pays an annual dividend of $3.64 per share. Given this substantial stake, Berkshire is poised to receive a considerable amount in dividends.
How to Calculate
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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Here’s How Much
Berkshire shares of Chubb: 25,923,840
Chubb annual dividend per share: $3.64
Total Annual Dividend = 25,923,840 x 3.64
Result: $94,364,777.60 in dividends annually
Berkshire Hathaway will receive approximately $94.36 million annually in dividends from its investment in Chubb, which does not include reinvesting those dividends. If those dividends were reinvested, the annual dividend income would grow accordingly.
This substantial dividend income aligns with Buffett’s investment philosophy, emphasizing steady, predictable returns. Chubb’s reliable dividend payouts provide a stable income stream, reinforcing the financial robustness of Berkshire Hathaway’s diversified portfolio. Not to mention the fact that Chubb has raised its annual dividend payment for a whopping 31 consecutive years.
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