Berkshire Hathaway’s Evolution Under Warren Buffett

Berkshire Hathaway was in rough shape when Warren Buffett took the reins in 1965. Initially just a struggling textile firm, it has morphed into a massive investment holding company. By the time Buffett hands over the CEO role at the end of 2025, the firm is projected to be worth around $1 trillion, boasting numerous subsidiaries and a stock portfolio totaling about $330 billion.

Buffett had a keen eye for companies that showed consistent growth and profitability, often favoring those that actively returned value to shareholders through initiatives like buybacks and dividends. This strategy, naturally, helped Berkshire’s profits to spike. The incoming CEO, Greg Abel, has been part of the fold for over 20 years, so it stands to reason he might maintain a similar investment approach.

Interestingly, three long-term investments in Berkshire’s portfolio account for nearly half of its overall value and are set to deliver around $1.6 billion in dividends to the company this year.

1. Apple: $243.9 Million Dividend Expected in 2026

Apple, the tech giant behind the iPhone, iPad, and other products, has not only sustained its relevance but continues to innovate with AI features in its software. This could help broaden its appeal; the installed base already sits at an impressive 2.5 billion devices globally.

Berkshire’s investment in Apple spans about $38 billion from 2016 to 2023. As of early 2024, this position is valued at over $170 billion, accounting for nearly half of Berkshire’s total portfolio. Although Buffett’s team decided to sell off about 75% of their shares to secure profits, Apple remains the largest individual stock in Berkshire’s holdings at 21.5%.

Currently, Berkshire owns 227.9 million shares, with the tech company paying a quarterly dividend of $0.26 in January and $0.27 in April. There are likely two more payments of $0.27 this year, bringing the dividend to $1.07 per share. So, while growth is crucial, the expectation of $243.9 million in dividends from Apple stocks in 2026 is significant. However, this plan might change if Abel opts to further trim Berkshire’s holdings.

2. American Express: $556.4 Million Dividend Projected

American Express is a well-established player in the global payments landscape, offering credit cards and managing the associated debt and payment networks. Unlike its competitors like Visa and MasterCard, AmEx operates its own payment networks rather than depending on banks for card issuance.

Berkshire’s investment in AmEx has been long-term, with Buffett acquiring about $1.3 billion in shares from 1991 to 1995. Today, this stake is valued at approximately $47.7 billion, which is about 14.4% of the overall Berkshire portfolio—a staggering 3,569% return on investment before dividends.

This year, AmEx paid a quarterly dividend of $0.82 in January and $0.95 in April, with two more expected at the same rate in 2026, totaling $3.67 per share. With 151.6 million shares, Berkshire is poised to earn $556.4 million in dividends this year.

3. Coca-Cola: Anticipated $848 Million Dividend

Coca-Cola stands as a towering figure in the beverage industry. Despite slower revenue growth, the company has a vast portfolio with over 200 brands across more than 200 countries. Significant cash generation allows for substantial returns to shareholders.

Berkshire has held onto Coca-Cola for a long time as well. Buffett’s initial investment of $1.3 billion between 1988 and 1994 has ballooned to a value of around $32.1 billion today, yielding a 2,370% return excluding dividends. Coca-Cola now represents about 9.7% of Berkshire’s portfolio.

So far in 2026, Coca-Cola has distributed two quarterly dividends of $0.53 per share, with expectations for two additional payments, bringing the total to $2.12 per share. With 400 million shares held, Berkshire is set to collect an impressive $848 million in dividends this year, effectively recouping its original $1.3 billion investment through dividends every 18 months.

This situation serves as a clear illustration of the benefits of long-term investment and compound interest, a principle that bears fruit with patience.