Berkshire to see boost from bank dividend hikes


Berkshire Hathaway (BRK.A, BRK.B) has a larger allocation to financials in its equity portfolio than any other industry and stands to rake in $123M more this year than last thanks to increased dividends at Wells Fargo, American Express, and U.S. Bancorp, among other smaller holdings like Goldman Sachs and BNY Mellon (though Goldman actually hasn't made an announcement yet). Berkshire also has a large preferred stake and warrant holdings in Bank of America, effectively making it one of the bank's largest shareholders.

The dividends won't make a huge dent in Berkshire's cash pile of over $48B, and Buffett is surely enjoying stock appreciation and the boosted buybacks - which effectively raise his ownership stake - even more.

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Comments (10)
  • Owen
    , contributor
    Comments (720) | Send Message
     
    Anyone who sincerely believes one can see a "boost" from collecting dividends on a company one owns hasn't been listening to a word Warren Buffett has been saying for decades.
    27 Mar 2014, 02:42 PM Reply Like
  • mrdruss
    , contributor
    Comments (66) | Send Message
     
    They should pay a dividend, if 100's of millions of $$ won't make a difference in the bottom line!
    27 Mar 2014, 03:21 PM Reply Like
  • Owen
    , contributor
    Comments (720) | Send Message
     
    Or just voluntarily pay more taxes than they have to, which is essentially the same thing.
    27 Mar 2014, 04:34 PM Reply Like
  • legal eagle
    , contributor
    Comments (35) | Send Message
     
    How many a shares do you have!

     

    ok how many b shares to you have
    ok are you just musing??
    27 Mar 2014, 08:25 PM Reply Like
  • legal eagle
    , contributor
    Comments (35) | Send Message
     
    are an a or b shareholder or just a wannabe?
    27 Mar 2014, 08:27 PM Reply Like
  • walterrn
    , contributor
    Comments (295) | Send Message
     
    Owner of B shares since before the split. Don't want a dividend to be paid out. Prefer growth and lower taxation.
    28 Mar 2014, 09:49 AM Reply Like
  • Owen
    , contributor
    Comments (720) | Send Message
     
    "Owner of B shares since before the split. Don't want a dividend to be paid out. Prefer growth and lower taxation. "

     

    Now, there's someone who understands value.
    28 Mar 2014, 10:35 AM Reply Like
  • mrdruss
    , contributor
    Comments (66) | Send Message
     
    B share owner of 100 shares bought at the split. Prefer a divdend that I can put on div reinvest.
    28 Mar 2014, 10:36 AM Reply Like
  • Owen
    , contributor
    Comments (720) | Send Message
     
    "Prefer a divdend that I can put on div reinvest."

     

    Really? So, instead of Berkshire taking those earnings and redeploying them, you want the company to issue them to you as dividends, have you pay tax on those dividends, and then you hand the remaining after-tax money back to them to reinvest?

     

    If you're so keen on paying more taxes, why not just donate the equivalent amount to a charity?

     

    If it's just for seeing your number of shares grow, they could do a 102:100 stock split once a year for the same effect, plus save you the tax on the dividends.
    28 Mar 2014, 10:53 AM Reply Like
  • ipaduser
    , contributor
    Comments (751) | Send Message
     
    @Owen

     

    Keep chipping away.

     

    This is a hard idea to grasp, it would seem, from comments on many articles I've followed on SA.
    28 Mar 2014, 01:33 PM Reply Like
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