Warren Buffett dividend income is expected to exceed $1.3 billion this year from two key stock investments. Although Buffett and Berkshire Hathaway rarely pay dividends, they still value companies that generate steady dividend income. This approach helps produce reliable cash flow even when stock prices fluctuate. In 2025, Buffett’s dividend income will come mostly from Chevron, a major U.S. oil and energy producer.
Buffett has increased his stake in Chevron in recent years. Despite low oil prices, he believes demand will rise, leading to higher prices. This belief has motivated Berkshire Hathaway to acquire over 118 million Chevron shares. These shares make up nearly 6% of Berkshire’s portfolio, making Chevron the company’s fifth largest holding. Consequently, Chevron’s dividends will contribute significantly to Buffett’s overall dividend income.
Chevron pays a quarterly dividend of $1.71 per share, which amounts to a roughly 5% dividend yield. Assuming this rate holds, Berkshire Hathaway will receive around $811 million in dividends from Chevron alone this year. Chevron has a long history of raising dividends, with 38 consecutive years of annual increases. This strong track record adds confidence to Buffett’s investment strategy.
The company reported $1.3 billion in free cash flow during the first quarter of 2025. However, excluding working capital, cash flow rose to $3.7 billion, comfortably covering the $3 billion paid in dividends during that quarter. Chevron’s management remains optimistic about future cash flow. They expect growth projects underway to add $10 billion in free cash flow in 2026, assuming oil prices remain at about $70 per barrel.
Moreover, Chevron prioritizes increasing dividends over share buybacks. If oil prices fall sharply, management would cut buybacks before reducing dividend payments. This policy further supports Buffett’s confidence in Chevron’s dividend income potential.
Overall, Warren Buffett dividend income highlights his ability to combine long-term capital growth with dependable passive income. This strategy allows Buffett and Berkshire Hathaway to maintain financial strength in volatile markets.
For more business updates, visit DC Brief.
