Here’s How Much Warren Buffett Earns In Dividends Annually From Chevron (CVX)

Warren Buffett, widely regarded as the greatest investor of all time, has amassed generational wealth for himself and Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) shareholders by following a simple investing strategy: investing in high-quality companies at fair prices and holding for the long term.

Key Points

• Chevron Corp. (NYSE: CVX) is Berkshire Hathaway’s fifth-largest position in its portfolio.

• The energy company has raised its annual dividend payment for 38 consecutive years.

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In late 2020, as the Covid-19 pandemic decimated global oil demand, Buffett and Co. began accumulating shares of energy giant Chevron Corp. (NYSE: CVX). Berkshire Hathaway has steadily built its stake in Chevron, making it a significant part of its portfolio.

Chevron is one of the world’s largest integrated energy companies, with operations in the exploration, production, refining, and marketing of oil and natural gas, as well as a growing position in alternative energy, including renewable fuels, carbon capture, and hydrogen technology.

Berkshire’s Stake in Chevron

Berkshire Hathaway currently owns 118,610,534 shares of Chevron valued at approximately $18.1 billion. This represents about 6.6% of its portfolio, making it Berkshire’s fifth-largest position behind Apple (Nasdaq: AAPL), American Express (NYSE: AXP), Coca-Cola Co. (NYSE: KO), and Bank of America (NYSE: BAC).

Chevron currently pays a quarterly dividend of $1.71 per share, equating to an annual dividend of $6.84 per share and giving its stock a yield of about 4.4% at the time of this writing, which is well above the S&P 500’s yield of about 1.4%.

To calculate Berkshire Hathaway’s annual dividend income from Chevron, we simply multiply its shares owned by the annual dividend per share:

Shares of Chevron owned: 118,610,534

Annual dividend per share: $6.84

Total annual dividend: 118,610,534 × $6.84 = $811,405,051

Berkshire Hathaway will receive $811.4 million in dividends from Chevron in 2025 based on its current dividend rate. That equates to $202.85 million quarterly or about $2.22 million per day.

A Dividend Aristocrat

Chevron has raised its annual dividend payment for 38 consecutive years, with its latest hike being a 5% increase in January. While it is well on its way to reaching “dividend king” status (50+ years of growth), it is a well-established dividend aristocrat, which is a company that has raised its dividend for 25 consecutive years or more.

Other notable dividend aristocrats in the energy sector include Exxon Mobil (NYSE: XOM), NextEra Energy (NYSE: NEE), and Atmos Energy (NYSE: ATO).

How Much Could You Earn With a $10,000 Stake in Chevron?

While owning millions of shares of Chevron is out of reach for most investors, a $10,000 stake is much more realistic. At a current market price of just under $154 per share, a $10,000 investment would buy about 65 shares.

With an annual dividend of $6.84 per share, that investment would generate $444.60 per year in dividend income. Reinvesting dividends over time could further amplify those returns, making Chevron a solid choice for dividend-focused investors.