Warren Buffett is using these 3 top stocks to generate a fat inflation-fighting income stream of $1.9 billion follow along now for some healthy cash return<\/p>\n
Investors may feel a bit battled in this environment. Some experts say that the market will bottom soon, while others argue that theres plenty more downside ahead.<\/p>\n
Put simply, while everyone wants to buy low and sell high, the concern is that you might buy low and sell lower.<\/p>\n
If you dont feel confident in the markets direction right now, remember: You dont have to trade stocks to make money.<\/p>\n
Each year, Warren Buffett collects billions of dollars just from dividends. In fact, the majority of Berkshire Hathaways holdings are now dividend stocks.<\/p>\n
Heres a look at three companies in the Oracle of Omahas collection that provide Berkshire with a generous total of $1.9 billion in annual dividend income. Of course, you dont need billions of dollars to ride his coattails.<\/p>\n
As the parent company of U.S. Bank, U.S. Bancorp is one of the largest banking institutions in the country.<\/p>\n
Last summer, the bank increased its quarterly cash dividend from 42 cents to 46 cents per share thats $1.84 per share annualized. At the current share price, the company yields a generous 3.6%.<\/p>\n
Berkshire owns 144,046,330 shares of U.S. Bancorp, meaning its earning over $265 million in annual dividend income just from this one holding.<\/p>\n
It also helps that banks are solidly positioned for the rising interest rate environment: they lend money out at higher interest rates than they borrow, pocketing the difference. As interest rates increase, the spread earned by banks widens.<\/p>\n
To tame spiking inflation, the Fed raised its benchmark interest rates by 50 basis points on May 4, marking the first half-point increase since 2000. Similar moves are expected to occur at the Feds upcoming meetings in June and July.<\/p>\n
A discussion of Buffetts dividend stocks would not be complete without his beloved Coca-Cola.<\/p>\n
Buffett started hoarding shares of the beverage giant in the late 80s. Today, Berkshire owns a whopping 400,000,000 shares of the company.<\/p>\n
Story continues<\/p>\n
Coca-Cola went public more than 100 years ago. This February, the board approved the companys 60th consecutive annual dividend increase, raising the annual payout to $1.76 per share.<\/p>\n
And that means Berkshire now collects $704 million in dividends a year from Coca-Cola.<\/p>\n
Its not hard to see why the payout has been so reliable: The companys iconic products are sold in more than 200 countries and territories, and even in a recession, a simple can of Coke is still affordable to most people.<\/p>\n
The stock currently yields 2.8%.<\/p>\n
Energy stocks have turned out to be big winners amid the oil price boom, and Buffett expects the fun to continue.<\/p>\n
The legendary investor significantly increased his stake in Chevron in Q1. Owning 159,178,117 shares, Berkshires Chevron position has a market value of over $28 billion, making it the third-largest holding in the portfolio.<\/p>\n
As an oil and gas supermajor, Chevrons business is firing on all cylinders. For Q1, the company reported earnings of $6.3 billion, which more than quadrupled the $1.4 billion in the same period last year. Revenue totaled $54.4 billion for the quarter, up 70% year-over-year.<\/p>\n
In January, Chevrons board approved a 6% increase to the quarterly dividend rate to $1.42 per share.<\/p>\n
Holding 159,178,117 shares of Chevron, Berkshire now collects a staggering $904 million a year in dividends from the oil producer.<\/p>\n
Chevron shares are already up 50% in 2022 and now offer an annual dividend yield of 3.2%.<\/p>\n
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n
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Warren Buffett is using these 3 top stocks to generate a fat inflation-fighting income stream of $1.9 billion follow along now for some healthy cash...<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Warren Buffett is using these 3 top stocks to generate a fat inflation-fighting income stream of $1.9 billion follow along now for some healthy cash return Investors may feel a bit battled in this environment. Continue reading