February 27, 2023

Here's How Much Warren Buffett Makes In Apple Dividends Annually

Posted By: ndeeney

Warren Buffett, the billionaire mind and chairman of Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), found himself reiterating that he is a business picker, not a stock picker, in his latest annual letter to investors.

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In the letter, Buffett explains how he and his partner Charlie Munger have developed a portfolio of businesses with “extraordinary economics” over the years, which is why Apple Inc (NASDAQ: AAPL) is Berkshire Hathaway’s largest holding.

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What Happened: Berkshire added 333,856 shares of Apple in the most recent quarter, representing approximately 39.9% of its portfolio, owning roughly 895,136,175 shares of the Cupertino-based tech giant. This represents about 5.4% of Apple’s outstanding shares.

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While it is no secret that Berkshire’s position in Apple is a mammoth holding, what is less known is exactly how much Buffett makes in Apple dividends annually.

Read also: Why Warren Buffett Prefers Publicly-Traded Companies Over Controlled Businesses

According to the most recent financials issued by Berkshire, total dividend income across its portfolio increased $979 million, or 19.3% in 2022 to $6.03 billion compared to 2021. Dividend income increased $170 million, or 3.5%, in 2021 versus 2020.

Looking at Apple a little closer, Berkshire reaped a quarterly dividend of 23 cents — or 92 cents on an annualized basis — from its $116-billion position in the tech giant.

This means that Berkshire earned approximately $823.5 million from Apple dividends in 2022; not to mention the unrealized capital gains from the shares it owns. Berkshire first invested in Apple in 2016.

Apple brought in around $394.3 billion in revenue over the course of 2022, meaning the $823.5 million returned to Berkshire through dividends represents 0.2% of the tech giant’s total revenue last year.

To put $823.5 million in perspective, Berkshire Hathaway could buy the struggling Bed Bath & Beyond Inc (NASDAQ: BBBY) retailer, whose market cap is $168.83 million, nearly five times over with the funds.

Read next: Warren Buffett Gushes Over His Camaraderie With Munger: ‘Never Have A Phone Call With Charlie Without Learning Something’

Photo via Shutterstock.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article Here’s How Much Warren Buffett Makes In Apple Dividends Annually originally appeared on Benzinga.com

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