Berkshire Hathaway, under the guidance of Warren Buffett, maintains investments in a selection of high-dividend yielding stocks. Here's a rundown of the top picks from his portfolio.
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Berkshire Hathaway, the conglomerate led by legendary investor Warren Buffett, is known for its diverse portfolio and consistent outperformance. However, the company has a lesser-known extension of its holdings managed indirectly by Buffett through New England Asset Management (NEAM). This subsidiary, acquired through General Re in 1998, focuses on high-yield income investments[1][4].
The portfolio includes seven stocks with notably high dividend yields, emphasizing income alongside long-term growth potential. Realty Income, a real estate investment trust (REIT), stands out for its consistent dividend growth, having increased its quarterly dividend for 110 consecutive quarters since going public in 1994[2].
Financial firms like Golub Capital and Ares Capital offer very high yields characteristic of business development companies (BDCs). Golub Capital BDC has a dividend yield of approximately 10.2%, while Ares Capital boasts a yield of about 8.4%[1].
Pfizer, Kraft Heinz, Sirius XM, and Chevron contribute stability and diversification with their respective sectors and yields. Pfizer has a dividend yield around 6.8%, Kraft Heinz has a yield of approximately 5.6%, Sirius XM offers a yield of approximately 4.5%, and Chevron provides a yield of approximately 4.5%[1].
Lamar Advertising, not part of NEAM's portfolio but worth mentioning, has a dividend yield of approximately 5%. Berkshire Hathaway has recently increased its investment in Sirius XM, making it one of its top positions[1].
Berkshire Hathaway, under Buffett's leadership, has never paid shareholders a dividend[3]. Instead, it has reinvested its earnings to fuel its growth. This "secret portfolio" serves as an alternative avenue for high-yield income investments, separate from Berkshire Hathaway’s main, publicly disclosed $292 billion equity portfolio[1][3].
References: [1] CNBC. (2021, August 11). Berkshire Hathaway's secret portfolio of high-yielding stocks. Retrieved from https://www.cnbc.com/2021/08/11/berkshire-hathaways-secret-portfolio-of-high-yielding-stocks.html [2] Realty Income Corporation. (n.d.). Dividend history. Retrieved from https://www.realtyincome.com/investors/dividend-history [3] Berkshire Hathaway Inc. (n.d.). Dividend policy. Retrieved from https://www.berkshirehathaway.com/letters/2020ltr.pdf [4] New England Asset Management. (n.d.). About us. Retrieved from https://www.neam.com/about-us/
- Investment in high-yield income stocks, managed indirectly by Warren Buffett through New England Asset Management (NEAM), adds an alternative avenue to Berkshire Hathaway's main equity portfolio.
- Legendary investor Warren Buffett's subsidiary, NEAM, focuses on stocks with high dividend yields, such as Realty Income, which has increased its dividend for 110 consecutive quarters.
- Financial firms like Golub Capital and Ares Capital, part of NEAM's portfolio, offer significantly high yields, characteristic of business development companies (BDCs).
- Personal finance enthusiasts might be intrigued by the high-yield investments carried out by NEAM, given its focus on income alongside long-term growth potential, and the use of technology to manage investments in various sectors like sports, finance, and real estate.
