Berkshire Hathaway Collected $479 Million in Dividends from Its American Express Stake
Greg Abel has taken over leadership of Berkshire Hathaway following Warren Buffett's retirement. One notable investment under his watch is the company’s stake in American Express, which was acquired for $1.3 billion and now holds a market value of $56 billion as of 2025. In that year alone, Berkshire received $479 million in dividends from its ownership, highlighting the long-term benefits of Buffett's early investment decisions. American Express has consistently grown both its earnings and dividend payouts over time. The company reported a recent annual dividend per share increase to $3.54, up significantly since 2016. This growth underscores why Berkshire’s patience in holding onto this stake has paid off handsomely. Investors are encouraged to consider similar long-term strategies with well-managed companies that offer growing dividends. The article also notes American Express's strong financial performance and current valuation metrics as potential indicators of investment opportunity, suggesting the stock may be undervalued based on its forward P/E ratio.
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Topics: American Express Berkshire Hathaway Dividend Yield Earnings Investment