Warren Buffett's Top Three Dividend Stocks: Apple, American Express, and Coca-Cola
Warren Buffett’s Legacy at Berkshire Hathaway: The Dividend Powerhouses
Warren Buffett has led Berkshire Hathaway as CEO since 1965, transforming the company into an investment powerhouse. While he plans to step down as CEO at the end of this year, Buffett will remain chairman of the board, ensuring his influence endures. His hallmark approach—investing in strong, well-managed companies with shareholder-friendly policies—remains the guiding principle for Berkshire Hathaway.
Buffett favors businesses that regularly reward shareholders through dividends and stock buybacks. This strategy has generated staggering returns: a $1,000 investment in Berkshire Hathaway in 1965 would have grown to an incredible $44.7 million by the end of 2024. In contrast, the same investment in the S&P 500 would be worth about $342,906.
Among Berkshire Hathaway’s broad portfolio of dividend-paying stocks, three companies alone represent nearly 48% of the $282 billion portfolio and could deliver approximately $1.6 billion in dividend income in 2025.
1. Apple: $309 Million in Expected Dividends for 2025
Apple (NASDAQ: AAPL) is a global technology giant known for its iPhone, iPad, and Mac computers. Between 2016 and 2023, Buffett and his team invested roughly $38 billion in Apple shares, with the investment’s value soaring to $170 billion by 2024.
Although Berkshire sold part of its Apple stake last year to reduce portfolio concentration, Apple remains its largest holding, accounting for 21.7% of the portfolio. In 2025, Berkshire has already received dividend payments of $0.25 per share in February and $0.26 per share in May and is likely to receive two more payments of $0.26 each. With 300 million shares, these dividends are expected to total $309 million this year. While Apple's dividend yield is modest at 0.5%, the substantial capital appreciation has been the primary driver of returns.
2. American Express: $479 Million in Annual Dividends
American Express (NYSE: AXP), a leader in global payments, operates a unique closed-loop ecosystem, managing its own payment network, issuing cards, and providing credit lines. Berkshire Hathaway accumulated its stake—now amounting to one-fifth of American Express—in the 1990s for about $1.3 billion, and it’s now valued at $44.9 billion (15.9% of the portfolio).
As of 2025, Berkshire has received dividend payments of $0.70 and $0.82 per share, with two additional $0.82 installments likely later in the year. With 151.6 million shares, Berkshire is set to collect about $479 million in dividends this year, reflecting a yield of around 1.1%.
3. Coca-Cola: $816 Million in Projected Dividends
Coca-Cola (NYSE: KO) stands as the world’s largest beverage company, featuring more than 200 brands such as Powerade, Sprite, Fanta, and the flagship Coca-Cola. Buffett invested $1.3 billion for 400 million shares between 1988 and 1994, a position he has never sold. That stake is now worth $28.5 billion, making up 10.1% of Berkshire’s portfolio.
In early 2025, Coca-Cola increased its dividend to $0.51 per share quarterly. If this payout continues, Berkshire can expect $2.04 per share for the year, totaling $816 million in dividends—a generous yield of 2.8%. This long-term investment highlights Buffett’s patience and discipline, letting compounding returns work over the decades.
Buffett’s focus on robust, shareholder-rewarding businesses ensures that Berkshire Hathaway continues to benefit from substantial dividend income—demonstrating the lasting power of his investment philosophy.
This content is for informational purposes only and does not constitute financial advice.
