Investing

Warren Buffett Is Collecting $1 Billion a Year in Passive Income From This Stock Alone

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If any investor has stood the test of time, it’s Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock star-like presence in the investing world, and his annual Berkshire Hathaway Inc. (NYSE: BRKA) shareholders meeting draws thousands of loyal fans who are investors.

Known for his long buy-and-hold strategies and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the entire world, and with interest rates edging lower again, it makes sense to add dividend-paying stocks that will rally when rates ultimately get cut at some point this year.

While Berkshire Hathaway doesn’t pay shareholders dividends, Warren Buffett has many dividend-paying stocks in his portfolio. However, one company pays the venerable investors nearly $1 billion yearly dividend income.

Berkshire Hathaway rakes in billions of dollars per year in dividend income

The investing giant collects a reported $6 billion in dividend income each year, and the money typically goes to the enormous cash hoard, much of which is reported to be in short treasury paper.

Warren Buffet has built a massive pile of cash

Always searching for companies to buy or adding to current or new positions, the cash pile at Berkshire Hathaway is reported to be a stunning $157.24 billion. This is the largest ever in the 60-year history of the investment giant.

Warren Buffett is likely looking for bargains

While Berkshire Hathaway has a massive portfolio of common stock, it’s a good bet he’s also looking for private companies to add to his holdings. He owns 65 well-known companies like Geico, Duracell, Dairy Queen, and NetJets.

Six stocks account for more than three-quarters of Berkshire Hathaway’s revenue

While there are 48 companies in the stock portfolio, eight stocks represent almost 80% of the holdings. Three companies supply over half the dividend income yearly; six stocks account for three-quarters of the total revenue.

The runners-up in the dividend race are two stocks in which Warren Buffet has vast positions

Over the past few years, Mr. Buffett has loaded the boat on Occidental Petroleum Corp. (NYSE: OXY), the second-place winner, with a reported $965,196,739 annual dividend, including the higher-yielding preferred stock. Apple Inc. (NASDAQ: AAPL) pays $878,937,967 annually to take the bronze medal.

One company is the straight-up dividend winner

Bank of America Inc. (NYSE: BAC) takes the checkered flag, paying just shy of $1 billion with a total of $991,537,926 in annual income. Any boost by the bank this year will surely get that figure over the $1 billion mark.

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