Berkshire’s 3 Dividend Gems: A $2.1 Billion Windfall from Buffett’s Wisdom

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When Mr. Warren Buffett first set his discerning eye upon Berkshire Hathaway in 1965, it was a modest textile enterprise, much like a gentleman’s waistcoat with a faint suggestion of moth damage. Yet, with the deftness of a man who knows a bargain, he transformed it into a £1 trillion colossus, replete with subsidiaries such as Dairy Queen and GEICO, alongside a £294 billion portfolio of stocks and securities. One might say he turned a moth-eaten waistcoat into a full-dress suit, complete with a pocket square of dividends.

Mr. Buffett, a most astute observer of corporate conduct, has a particular fondness for companies that not only generate revenue with the vigor of a stampede of thoroughbreds but also distribute it to shareholders with the generosity of a host at a summer fete. Dividends and share buybacks, you see, are to him what a well-stocked larder is to a man of means—both reassuring and ever so slightly amusing in their predictability. It is this philosophy that has turned Berkshire into a cash-flowing machine, its coffers as full as a gentleman’s pocket after a successful auction at Christie’s.

Had you, dear reader, invested a mere £500 in Berkshire stock when Mr. Buffett took the reins, it would have grown to a rather astonishing £22.3 million by 2024. In contrast, a similar bet on the S&P 500 would have yielded a modest £171,453—enough to purchase a fine hat, but not quite sufficient to fund a transatlantic voyage on the QE2.

Berkshire’s portfolio is a veritable treasure trove of dividend-paying stocks, but three in particular—American Express, Chevron, and Coca-Cola—account for 31.7% of its £294 billion value. Assuming Mr. Buffett and his colleagues at Berkshire decide not to sell a single share, these three investments are poised to yield a staggering £2.1 billion in dividends during 2025. One might imagine the company’s accountants dancing a jig, or at the very least, sipping their brandy with particular satisfaction.

1. American Express: £479 million in potential dividends this year

American Express, that grand old institution of financial transactions, operates with the precision of a Swiss watch and the discretion of a butler in a well-heeled household. It issues credit cards, funds the lines of credit, and manages the payment network with the efficiency of a man who has never misplaced his spectacles. Unlike its rivals, who rely on third parties to do the heavy lifting, American Express prefers to keep all the cogs in-house, much like a gentleman who insists on mending his own waistcoat buttons.

Mr. Buffett’s affection for American Express dates back to the 1960s, when the company found itself in a rather sticky situation. A client had secured a loan with assets that were, shall we say, more imaginative than real. The stock plummeted, and investors fled like guests at a garden party when the tea goes cold. But Mr. Buffett, ever the optimist, saw opportunity where others saw calamity. He began accumulating shares with the enthusiasm of a man collecting rare stamps, and by the 1990s, he had acquired £1.3 billion worth. One might say he saw the embers of a fire and decided to stoke them.

Today, Berkshire holds 151.6 million American Express shares, valued at £47.2 billion—16.1% of its portfolio. The dividends, paid out with the regularity of Big Ben’s chimes, have already yielded two payments this year: £0.70 per share in February and £0.82 in May. Should the pattern continue, Berkshire may soon find itself with £3.16 per share for the year, translating to £479 million in dividends. One might imagine Mr. Buffett sipping his morning tea and murmuring, “How very convenient.”

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2. Chevron Corporation: £811 million in potential dividends this year

Chevron, a veritable titan in the oil and gas industry, operates with the efficiency of a Swiss watch and the audacity of a man who dares to wear a bowler hat in a hurricane. From the Gulf of America to the shores of Australia, Chevron drills, refines, and distributes with the precision of a man who has never spilled a drop of tea. It even owns over 8,000 gas stations in the U.S., where one can fill one’s tank and perhaps one’s wallet, depending on the price of crude.

Berkshire first invested in Chevron in 2020, and though it has trimmed its position slightly, it still holds 118.6 million shares valued at £18.3 billion—6.2% of its portfolio. The dividends, paid at £1.71 per share, have already yielded two payments this year. Should the pattern continue, Berkshire may soon find itself with £6.84 per share for the year, translating to £811 million in dividends. One might say Chevron is a most reliable companion, much like a good scotch—always there when needed, and never in a hurry to leave.

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3. Coca-Cola: £816 million in potential dividends this year

Coca-Cola, that venerable institution of fizzy delight, has been a stalwart in Berkshire’s portfolio since the late 1980s. Mr. Buffett’s 400 million shares, originally purchased for £1.3 billion, now gleam like a well-aged port. The dividends, paid out with the regularity of Big Ben’s chimes, ensure that Berkshire’s coffers remain as full as a gentleman’s pocket after a successful auction.

With a quarterly dividend of £0.51 per share, Coca-Cola has already yielded two payments this year. Should the pattern continue, Berkshire may soon find itself with £2.04 per share for the year, translating to £816 million in dividends. One might imagine Mr. Buffett raising a glass of Coke and murmuring, “How very British.”

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Now, one might wonder if Mr. Buffett’s successor, Greg Abel, will maintain this grand tradition of dividend harvesting. Mr. Buffett, though stepping down as CEO, will remain chairman, much like a man who retires from the hunt but keeps his dogs well-fed and eager for the next pheasant season. It is unlikely that Berkshire will part with its dividend darlings, for they are the lifeblood of the empire, much like a good scotch is to a gentleman’s evening. 💰

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2025-07-30 10:28