Buffett to Make $70 Million in Bank Dividends This Year

Many people have reasons to celebrate after a large majority of the United States banks have passed the stress test from the Federal Reserve on Wednesday. This promptly announced plans to raise bank dividends, and the chief beneficiary among them is Warren Buffett.

The CEO of Berkshire Hathaway, currently worth around $72.3 billion, will expect to receive dividend payouts on his bank investments this year somewhere to the tune of $70 million, according to Noah Buhayar from Bloomberg.

The banks that were lucky enough to pass the stress test – specifically designed in order to measure the capital holdings of a bank to figure out if they are prepared in the event of market upside – were given the go-ahead to increase the payouts of their dividends. This increase also comes from Wells Fargo, a company that Berkshire Hathaway is heavily invested in.

Wells Fargo is going to raise their dividend by 2 ½ cents per share, and this puts the payout for Berkshire Hathaway at about $48 million at the end of this year. American Express, another major holding at Berkshire Hathaway, is going to raise their dividend to three cents per share. This will add another $18 million to the stockpile that Berkshire Hathaway has already accumulated.

The Oracle of Omaha also has stock in Goldman Sachs and U.S. Bancorp, and their additional contribution will amount to about $6.5 million and dividend payments this year.

All in all, this is not a bad cleanup for Warren Buffett whatsoever. The Oracle of Omaha is not going to complain at all, even though last year’s haul was $120 million so this is quite a step down from there.

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