Warren Buffett's Berkshire Hathaway BRK owns 50 million shares of Kroger KR stock, which is roughly 6.9% of the company. And while it's a large percentage of Kroger, it only represents approximately 0.6% of Berkshire's portfolio.
Kroger is one of the largest retailers in the United States, primarily operating supermarkets, and it currently rewards its shareholders with a quarterly dividend of $0.29 per share, equating to an annual dividend of $1.16 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 Kroger: 50,000,000
Kroger annual dividend per share: $1.16
Total Annual Dividend = 50,000,000 x 1.16
Result: $58,000,000
Berkshire Hathaway will receive approximately $58 million in dividends from Kroger stock this year based on its current dividend rate, which equates to approximately $14.5 million quarterly.
The income Berkshire earns from Kroger aligns with Warren Buffett’s investment philosophy, which emphasizes steady, predictable returns – and it's also worth noting that Kroger has raised its annual dividend payment for 17 consecutive years, so Berkshire's dividend income will likely continue to grow in the years ahead.
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