37% of Warren Buffett's $290 Billion Berkshire Hathaway Portfolio Is Invested in These 2 S&P 500 Dividend Stocks
Even though Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) doesn't pay a dividend, it's clear that CEO Warren Buffett is a big fan of companies that cut investors in on their profits through regularly delivered cash checks. In fact, each of the 10 largest stock holdings in Berkshire's portfolio pays a reliable dividend.Even more striking, while Buffett has argued that most investors should limit their exposure to risk and volatility through diversification, the composition of his company's stock portfolio is heavily concentrated around just a handful of dividend-paying stocks. In fact, just two of these companies account for roughly 37% of Berkshire's stock holdings. Read on as two Motley Fool contributors offer up a look at Buffett's two biggest dividend-paying bets -- Apple (NASDAQ: AAPL) and American Express (NYSE: AXP).Keith Noonan (Apple): Paying a dividend is typically a good sign that a company is generating reliable profits, and Apple has frequently ranked as the world's most profitable business over the last decade. But with a dividend yield of roughly 0.5%, Apple stock sports a relatively small dividend at today's prices. On the other hand, the stock still generates a substantial amount of dividend income for Berkshire Hathaway.Continue reading
Even though Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) doesn't pay a dividend, it's clear that CEO Warren Buffett is a big fan of companies that cut investors in on their profits through regularly delivered cash checks. In fact, each of the 10 largest stock holdings in Berkshire's portfolio pays a reliable dividend.
Even more striking, while Buffett has argued that most investors should limit their exposure to risk and volatility through diversification, the composition of his company's stock portfolio is heavily concentrated around just a handful of dividend-paying stocks. In fact, just two of these companies account for roughly 37% of Berkshire's stock holdings. Read on as two Motley Fool contributors offer up a look at Buffett's two biggest dividend-paying bets -- Apple (NASDAQ: AAPL) and American Express (NYSE: AXP).
Keith Noonan (Apple): Paying a dividend is typically a good sign that a company is generating reliable profits, and Apple has frequently ranked as the world's most profitable business over the last decade. But with a dividend yield of roughly 0.5%, Apple stock sports a relatively small dividend at today's prices. On the other hand, the stock still generates a substantial amount of dividend income for Berkshire Hathaway.
