Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) has been quietly amassing a staggering $4.37 billion in annual dividend income, translating to a whopping $138.63 every second, without selling a single share.
What Happened: As of 2025, Berkshire Hathaway’s dividend income is a result of strategic capital allocation, brand loyalty, and long-term conviction, according to Barchart.
The company’s passive income mainly flows from a select group of high-quality, dividend-paying companies, many of which have been held for years or even decades.
Household names like Coca-Cola Co. (NYSE:KO), Apple Inc. (NASDAQ:AAPL), Bank of America Corp. (NYSE:BAC), and Chevron Corp. (NYSE:CVX) generate over half of the portfolio’s total dividend income. These companies are known for their strong brands, recurring revenues, and pricing discipline.
This passive cash engine not only boosts Berkshire’s income statement but also provides Buffett with optionality. The dividends received can be reinvested into new investments, stock buybacks, debt repayments, or held as cash reserves, without shrinking Berkshire’s ownership in the underlying businesses.
Berkshire’s approach is not based on yield-chasing or short-term momentum plays, but on the belief in “economic moats,” the durable competitive advantages that allow companies to fend off competition and maintain pricing power over time.
This strategy has led to a steady stream of passive income, which can be reinvested into new opportunities, stock buybacks, debt repayments, or held as cash reserves.
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Why It Matters: Despite the current investment landscape dominated by algorithmic trading and speculative bubbles, Berkshire Hathaway’s success is a testament to the enduring power of patience and quality.
Buffett has 56% of his $258 billion portfolio’s value exposed to AI, with Berkshire Hathaway holding stocks like Apple and Amazon.com Inc. (NASDAQ:AMZN) that leverage AI in their businesses on a large scale.
Earlier, it was revealed that Buffett makes over $2.2 million a day from his investment in Coca-Cola, a testament to his patient, long-term investing strategy. According to recent data, 98% of Buffett’s $160 billion wealth came after turning 65, showcasing the power of compound interest and reinforcing the value of long-term investing.
Meanwhile, this week, VeriSign Inc. (NASDAQ:VRSN) said that Berkshire had sold about one-third of its stake in the company, which it had held since 2012. The sale involved 4.3 million shares at $285 each, generating approximately $1.23 billion and reducing Berkshire's ownership from 14.2% to 9.6%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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