You Won't Believe How Much Money Berkshire Hathaway Gets From American Express Dividends

Core Insights - American Express is a long-held stock by Berkshire Hathaway, first purchased in 1964 and reopened in 1991, with Warren Buffett indicating it is a stock he would never sell [1][2] - New CEO Greg Abel has stated there will be no significant changes at the company, suggesting stability in its investment strategy [1] - American Express stock has significantly outperformed the market over the past decade, with a total return of 496% compared to 305% for the broader index [3] Investment Value - Berkshire Hathaway owns 151,610,700 shares of American Express, representing 22.1% of the company, valued at over $46 billion [2] - The current dividend yield of American Express is 1.07%, slightly below the S&P 500 average of 1.15% [3] - However, the yield on the cost basis is much higher due to the growth of dividends over the decades, with Berkshire's cost basis at approximately $8.60 per share [4] - The annual dividend per share is $3.80, resulting in a 44% annual return on the original investment just from dividends, amounting to $479 million in 2025 [5]