Greg Abel's Berkshire Hathaway Collected $479 Million in Dividends Last Year from an American Express Stake That Cost $1.3 Billion. You Can Put the Same Principles to Work for Yourself.

Greg Abel, who recently took over as the leader of Berkshire Hathaway from Warren Buffett, has been reaping significant dividends from Berkshire's investment in American Express. When Buffett retired at the age of 96, Abel became the new head of the company, but the investment strategies of the past are still benefiting him and Berkshire's shareholders.

American Express (AXP) is a financial services company that has grown over the course of 175 years. It offers a variety of services such as payment cards, banking, travel support, and expense management tools for businesses. The company also operates a major global electronic transaction network. As of 2025, American Express had a dividend yield of 1.2%, which makes it a relatively attractive investment option.

Berkshire Hathaway made an investment in American Express over multiple years, ending in 1995. The total investment cost was $1.3 billion. As of the end of 2025, Berkshire Hathaway owned 22% of American Express, which had a market value of $56 billion. In the 2025 annual report, Greg Abel reported that Berkshire Hathaway collected a staggering $479 million in dividends from American Express. This dividend income is impressive, considering the dividend yield of the company was only 1.2% at the time.

The key takeaway from this story is that healthy and growing dividend payers can deliver significant returns over the long term. American Express has consistently increased its dividend payouts over the years, with its total annual dividend payment in 2025 being $3.54 per share. This has resulted in a total yield of 4.7% when considering stock buybacks, making it an attractive investment option for those seeking long-term growth.