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Want to know how Warren Buffett makes money from dividends? Want to know exactly how much dividend income Buffett receives each year? Do you like the idea of using this information to build your own dividend empire? Then you should watch today's video. He is a bestselling author. Jason Fieber, 30, has a plan.
This guy retired at only 33 years old. I don't know how many people I've known who have achieved something like that . He is a true guru when it comes to passive income. Before we move on to today's topic, please give us a like if you find our videos useful. This helps us spread the word and grow the channel, and I would be very grateful.
Warren Buffett is one of the greatest investors the world has ever seen. According to Forbes, his fortune is just under $90 billion , and that's after he's already given billions to charity. He built this fortune solely through investing. He used investing as a platform to grow his wealth to incredible heights.
Eventually, he was able to buy entire companies through a conglomerate holding company he controlled—Berkshire Hathaway Inc. While ordinary investors like you and me usually don't have the ability to buy entire companies, even owning one share makes you a partial owner of the business. And one share is the path to 10, 100, 1000 shares, and so on .
By the way, these stocks often entitle you to one of the best shareholder benefits—dividends . And I'll show you how Warren Buffett uses dividends to make money, which will help you make money on dividends. A dividend is a distribution of a corporation's profits among its shareholders. If a company pays dividends, owning its shares entitles you to receive them.
This entitles you to dividends on an equal basis with others, in proportion, of course, to the number of shares you own. Apple Inc., for example, currently pays a dividend of 20.5 cents per share quarterly. That's 82 cents per year per share. Warren Buffett owns a large amount of Apple Inc. shares. I also keep Apple in my portfolio.
However, Buffett receives much more dividend income from Apple than I do because he owns much more shares. But the important point here is this . We both receive dividends from Apple. This is the beauty of this approach. Apple is actually Buffett's largest position in the portfolio of common stocks he manages within Berkshire Hathaway.
As of the end of the third quarter of 2020, Berkshire Hathaway owns over 944 million shares of Apple. This stake alone is worth over $129 billion , a significant portion of the total portfolio value of $271 billion. Technically speaking, these dividends are received by Berkshire Hathaway, not Buffett.
But because Buffett controls the company and its stock portfolio, and 99% of his wealth is invested in Berkshire Hathaway shares, Buffett is synonymous with Berkshire Hathaway. So, how much dividend income did Warren Buffett receive in 2019? A little over $4.5 billion. That's how many dividends Berkshire Hathaway's common stock portfolio received during 2019.
And that $4.5 billion can be reinvested back into the portfolio, buying even more stocks that, you guessed it , will yield even more dividends. Moreover, these dividends often grow organically, on their own . This is because Warren Buffett often invests in the same high-quality dividend stocks that I make videos about and that I personally invest in.
Companies whose shares Berkshire Hathaway buys typically increase their dividends every year. Again, using Apple as an example: they have been raising their dividends for the past nine consecutive years. Reinvesting growing dividends into new dividend stocks is a classic Buffett move. Organic dividend growth can be significantly accelerated by reinvesting it.
This creates a “snowball ” of unstoppable wealth and passive income. It is no coincidence that Buffett's biography is called "Snowball." So how did Warren Buffett get to this point? Well, to put it simply, he was buying stocks. Lots of promotions, over and over again. And he held those stocks for a very long time.
Of course, historically he has had access to much more capital than ordinary investors. But this method can be adapted to our needs. Using dividends to make money is not something Buffett has a patent on. Everyone can do it. The method is to create and own a collection of high-quality dividend stocks as part of a diversified portfolio.
Reinvest growing dividends back into your portfolio. Let the stocks buy even more stocks. Create a self-propelled snowball of wealth and passive income that keeps getting bigger. This method can be repeated by anyone. Indeed, I own over 100 different dividend stocks in my own portfolio, and that portfolio generates enough five-figure passive income for me to live on.
Of course, I'm not a billionaire, not even close, but I do n't need to be. I retired in my 30s and am living the life of my dreams because the dividends pay my bills. I wake up and do what I want, when I want, where I want, why I want, and with whom I want. I can do this because I get money from dividends while I sleep.
Buffett uses dividends to make money, and you can too. The main thing is to start. Build this portfolio one stock, one company at a time. Visit our channel to learn a lot about dividend stocks and creating passive income. Start rolling this snowball, because before you know it, it will turn into an avalanche.
Thank you very much for watching. I hope you enjoyed today's video. Like if you do, and write in the comments what you think about Buffett's dividend. Please subscribe to the channel and click the bell so you don't miss new videos. Also, take a look at the description under the video, there are important links there, including to my personal investment portfolio.
This six-figure portfolio, which I call the FIRE fund, generates enough passive dividend income to live on. This allowed me to retire at just under 30. I made my portfolio fully available on Patreon, and I post notifications there about every stock purchase or sale. I stand by my words and often invest in the same quality dividend stocks I talk about in the video.
Over the years, I have received feedback from thousands of investors who are making money on the same stocks that are in my portfolio. So if you think this might be useful to you, follow the link in the description to see my portfolio and receive my notifications. See you next time. Gay.
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