By THOUSIF INC
When Berkshire Hathaway (BRK.A 0.73%)(BRK.B 0.75%) CEO Warren Buffett buys or sells a stock, Wall Street and retail investors pay close attention.
That is because the Oracle of Omaha, as he has known, has averaged a 20.1% annual return since taking the reins in 1965.
There is a laundry list of why Buffett has been such a successful investor.
In no particular order, he thinks long term, stays focused on a small subset of sectors and industries he fully understands, piles into cyclical stocks, and runs a relatively concentrated portfolio.
However, the most significant advantage is that Berkshire Hathaway's portfolio is packed with dividend stocks.
Dividend stocks have a history of handily outperforming non-dividend payers.
Buffett's company looks to be on pace to collect north of $6 billion in dividend income over the next year.
Amazingly, $4.3 billion of this passive income will originate from just five stocks.
1. Chevron: $990,920,111 in annual passive income (estimated)
2. Bank of America: $867,595,685 in annual passive income
3. Coca-Cola: $704,000,000 in annual passive income
4. Occidental Petroleum: $873,975,521 in annual passive income
5. Apple: $834,954,980 in annual passive income